Thiruvananthapuram: In a major move aimed at accelerating road construction and maintenance across the state, the Government of Kerala has extended the benefit of bitumen price difference compensation up to April 30, 2027. The order issued by the Finance Department will apply to all engineering departments and Public Sector Undertakings (PSUs) executing road infrastructure works in the state.
Background of the Decision
​The abnormal spike in bitumen prices following the outbreak of the war in West Asia severely impacted contractors, causing delays in road projects executed by the Public Works Department (PWD) and Local Self Government Department (LSGD).
​To address this crisis, the state government had previously sanctioned price difference payments for road works where tenders were submitted before April 1, 2026, covering the period from April 1, 2026, to August 31, 2026.
​Key Decisions in the New Order
- ​Extended Validity: The price difference benefit has now been extended up to April 30, 2027.
- ​Expanded Scope: Originally limited to PWD, the benefit is now extended to all Engineering Departments and PSUs executing road works under the Kerala government.
- ​Alignment with MoRTH: The decision aligns with recent circulars from the Union Ministry of Road Transport and Highways (MoRTH), which extended bitumen price difference provisions for national projects.
- ​Departmental Requisitions: The extension was finalized following proposals submitted by the Chief Engineers of both PWD (Roads) and LSGD.
