Hetauda, April 27: The Federation of Contractors of Bagmati Province has warned that abnormal increases in fuel and construction material prices could bring construction activities to a halt.
Organising a press conference in Hetauda on Monday, the federation said the construction industry could completely shut down if the situation continues. Ongoing conflict in West Asia has driven up the prices of diesel, petrol, and kerosene, leading to a steady rise in fuel costs.
The federation said the impact has directly hit construction materials such as bitumen, cement, and steel rods, with shortages also emerging in the market. It warned that the situation is beginning to affect not only the infrastructure sector but the broader economy as well.
According to the federation, the slowdown in construction has already affected hundreds of thousands of workers and related industries. Federation अध्यक्ष Chhatra Bahadur Tamang urged the government to provide immediate relief to contractors and prevent the collapse of the sector. He said they want to avoid being pushed into protest.
The federation said repeated appeals to the government have not resulted in concrete solutions. It criticised the current price adjustment system based on Nepal Rastra Bank indices as impractical and called for adjustments based on actual market prices of construction materials.
It also stated that most ongoing projects, both small and large, are now at risk of disruption and possible shutdown. The federation has urged the government to facilitate deadline extensions, including provisions related to bank guarantees, insurance, and compensation, as projects are unlikely to be completed on time under current conditions.
People’s News Monitoring Service
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