Government weighs deeper support to keep road projects on track amid global turmoil.

More Relief Likely for Highway Contractors as West Asia Conflict Pushes Up Costs.

The Ministry of Road Transport and Highways is considering a second round of relief measures for highway contractors as the prolonged West Asia conflict continues to disrupt supply chains and inflate input costs. The additional steps, expected as early as next month, may include compensation for commodity price increases beyond prescribed thresholds, project timeline extensions on a case-by-case basis, and assured, timely cash flows for developers executing EPC and hybrid annuity model (HAM) projects. While EPC projects are fully government-funded, HAM projects follow a 40:60 funding split between the Centre and private players. A senior government official said the situation is being monitored daily and that industry feedback is guiding policy decisions to ensure projects remain viable and avoid delays. Earlier this month, the ministry announced three-month interim relief measures, including payment relaxations and changes to price indexation norms. However, the National Highways Builders Federation said the measures fall short, citing sharp increases in diesel, bitumen and logistics costs.