GCC Cancels Rs 60 Crore Road Tenders As Bitumen Price Hike Halts Work

Road relaying works have ground to a halt and tenders worth ₹60 crore have been cancelled across Chennai, leaving unfinished milled roads in neighbourhoods like Sholinganallur and Ramapuram. The Greater Chennai Corporation (GCC) and private contractors suspended the projects between December 2025 and June 2026 following an extraordinary surge in the prices of bitumen and fuel, which was driven by rising crude oil costs.

The price of bitumen VG 30, which is used for smaller streets, rose from ₹47,852 per tonne in December 2025 to ₹76,852 per tonne in June 2026. Similarly, the price of bitumen VG 40, used for bus routes and heavy-traffic highways, increased from ₹50,342 per tonne to ₹84,772 per tonne over the same period. Additionally, light diesel oil, which is used for heating in mixing plants, soared from ₹59,464 per kilo litre to ₹1,00,444 per kilo litre.

Because of these price hikes, contractors working for the GCC have been unable to finish relaying roads after milling them. At least 26 milled roads in Sholinganallur and Ramapuram have been left incomplete. This has created hazardous driving conditions, particularly for two-wheeler riders, and has led to accidents.

B. Narayanan, a resident of Sholinganallur, expressed the frustration of local motorists. He noted that when milling is completed but the actual relaying is delayed, road users struggle to navigate the uneven surfaces. He urged the government to allow contractors to finish the works currently stuck due to the bitumen shortage.

While the GCC has ordered contractors to complete the works they have already started, contractors have stated they would face bankruptcy if they proceeded under the current rates. Beyond the 26 unfinished milled roads, work on another 140 roads requiring relaying has also been delayed. Civic body officials are currently waiting for a decision on rates expected from the State government on July 1.

The issue has also affected State Highways projects, where contractors have slowed down relaying and repair works. For National Highways Authority of India projects, the Central government issued a circular stating it would bear the difference in bitumen prices for ongoing projects after April. However, contractors still faced difficulties procuring the material due to upfront payment requirements.