The Indian Ministry of Road Transport and Highways has introduced new payment norms for highway builders to mitigate the effects of commodity price volatility caused by the ongoing Iran war. Starting from April 1 to June 30, 2023, the government will implement monthly payments for contractors and concessionaires working on engineering, procurement, and construction (EPC) and hybrid annuity model (HAM) projects. This change reduces the price-adjustment cycle from three months to just one month, allowing for quicker adjustments in response to rising costs. Developers are facing increased project costs, estimated to rise by up to 10% due to a 20-25% increase in bitumen and fuel prices, alongside a 15-18% rise in electrical component prices. The government is committed to ensuring an adequate supply of bitumen and is closely monitoring market conditions to prevent disruptions in large-scale projects.