In response to rising commodity prices, the Ministry of Road Transport and Highways in India has implemented a new payment mechanism for highway contractors, reducing the price adjustment period from three months to one month. This temporary measure, effective from April 1, 2026, aims to help contractors cope with increased costs due to the ongoing crisis in the Middle East. The ministry's decision allows for monthly payments to be made for engineering, procurement, and construction (EPC) projects as well as hybrid annuity model (HAM) projects, ensuring a steady cash flow for contractors facing high prices for materials such as ordinary portland cement, mild steel, and bitumen. Highway developers expect project costs to rise by up to 10% due to a 25-30% increase in bitumen and fuel prices, along with a 15-18% jump in electrical item costs. The government has assured adequate supply of bitumen and is closely monitoring price volatility to prevent disruptions in major projects.