Cabinet Approves Relief for Road Projects Amid Rising Bitumen Prices

*Cabinet Meeting* *Date: 26 May 2026* Raipur, May 26, 2026/ At the Cabinet meeting, chaired by Chief Minister Shri Vishnu Deo Sai today at Mantralaya, Mahanadi Bhawan, following decisions aimed at enhancing administrative efficiency, ensuring continuity in infrastructure projects and strengthening institutional mechanisms were taken. 1. The Cabinet has approved the extension of the Selling Agency Agreement with the Government of India undertaking, Metal Scrap Trading Corporation Limited (MSTC), for another three years to facilitate transparent and systematic disposal of scrap and unserviceable materials accumulated across various State departments, public sector undertakings, corporations, boards and local bodies. The agreement, which has been in effect since November 2019, was due to expire on May 31, 2026. Through MSTC’s advanced e-auction platform, buyers from across the country can participate in competitive bidding for scrap materials, ensuring transparency and helping the State secure better value. The arrangement has made scrap disposal in the State more streamlined, technology-driven and revenue-oriented. The Cabinet observed that the decision would spare departments from undertaking separate tendering and advertisement processes, thereby saving administrative time and resources. It is also expected to improve cleanliness and space management in office premises. 2. In another important move, the Cabinet approved a proposal to bring the Chhattisgarh Employee Selection Board under the General Administration Department. Necessary amendments will be made to the “Chhattisgarh Government Business (Allocation) Rules” to implement the decision. Notably, following the implementation of the “Chhattisgarh Employee Selection Board Act, 2026”, the erstwhile Chhattisgarh Professional Examination Board has already been merged with the newly constituted Employee Selection Board. All assets and liabilities of the previous body have also been transferred to the new institution. 3. The Cabinet also took a significant decision to provide limited and partial price relief (compensation) to contracted road construction agencies in view of the extraordinary and unforeseen increase in bitumen prices after April 1, 2026. The relief will be applicable for the period from April 1, 2026 to June 30, 2026, with the objective of safeguarding State interests and ensuring uninterrupted progress of construction activities. The compensation will be provided only to offset the impact of the exceptional rise in bitumen prices, based on a prescribed formula. Existing escalation provisions for other construction components under contracts will continue to remain in force. The government noted that global circumstances and rising petroleum prices had begun affecting road surfacing works, raising concerns over potential disruptions in road construction and maintenance activities. Similar relief measures have also been recommended by the Ministry of Road Transport and Highways, Government of India, for National Highway projects. The State Government said the decision aims to ensure that road development projects continue without disruption and that citizens receive the benefits of infrastructure works within the stipulated timeframe.