Road Contractors To Get Price Adjustment Benefit As Crude Oil Prices Rise
· Free Press Journal
Bhopal (Madhya Pradesh): The Cabinet on Monday approved an increase in the discretionary amount that Ministers of State (MoS) can sanction per case from Rs 16,000 to Rs 25,000. The decision will enable MoS to provide higher financial assistance through their discretionary funds. The demand had been pending for a long time.
Meanwhile, in view of rising global bitumen prices, the Cabinet decided to provide the benefit of price adjustment in asphaltation works worth less than Rs10 crore. Under Public Works Department contracts below Rs10 crore for construction, renovation and maintenance of asphalted roads, contractors will now receive the benefit of price adjustment.
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A special formula has been prepared under which contractors will not have to bear the burden of increased bitumen prices and ensure the works can be completed on time. The decision is expected to benefit small and medium contractors. The relief approved by the Cabinet will apply to bitumen purchased between May 1, 2026 and June 30, 2026.
In place of quarterly calculation of price adjustment under Schedule G and Schedule H in Engineering, Procurement and Construction (EPC) and Hybrid Annuity Model (HAM) projects undertaken by the Madhya Pradesh Road Development Corporation, the Cabinet decided to calculate price adjustment on a monthly basis in accordance with Ministry of Road Transport and Highways (MoRTH) rules.At present, prices of crude oil and petroleum products have increased by 20% to 30%, affecting several construction works.
Development proposals worth Rs 29,540 crore approved
The Cabinet cleared development proposals worth more than Rs 29,540 crore. A sum of Rs 15,598 crore has been earmarked for examination and approval of publicly funded projects and schemes. A provision of Rs 6,900 crore has been made for the Kayakalp of urban routes.
To continue the Indira Gandhi National Old Age Pension Scheme for five years, the Cabinet sanctioned Rs 6,116 crore. Eligible elderly persons aged 60 years and above receive a pension of Rs 600.
A revised estimate of Rs 763.40 crore was sanctioned for establishment of an MBBS, nursing and paramedical college in Budhni. A new medical college with 100 MBBS seats and a 500-bed attached hospital will be established in Budhni. In addition, a 60-seat nursing college and a 60-seat paramedical college will also be set up.The Cabinet also sanctioned Rs163.95 crore for the Khuman Singh Irrigation Project.
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