The state Public Works Department Highway Department is awaiting fresh sanction from the Ministry of Road Transport and Highways for Package B of the Itanagar-Banderdewa four-lane highway. Package B stretches from Papu Hill to Nirjuli and had been awarded to the M/s Woodhill-Shivam joint venture. The contractor's agreement was terminated by the PWD Highway in April after failure to complete the work within the stipulated timeframe.

After termination the department carried out a reassessment of the balance work and prepared a new detailed project report which has been submitted to the ministry for sanction. The chief engineer said the department would float a fresh tender as soon as the sanction was accorded and aimed to do so within the next six months if all proceeds as planned. In the interim the department intends to pursue the ministry for early approval and to undertake maintenance work with state government support once the rains subside.

The Papu Hill–Naharlagun stretch has deteriorated and commuters are facing severe inconvenience, prompting residents to voice frustration on social media about the state government's failure to maintain the road. The department also indicated that maintenance of roads within Itanagar will be taken up in the coming days to ease traffic disruptions and minimise safety risks.

The contract for Package B was awarded on eight December 2021 for Rs three point four one seven billion (Rs 3.417 bn) and had a scheduled completion date of six December 2024. Under the agreement the contractor was obliged to mobilise adequate resources, meet project milestones and maintain the highway during construction, but progress at termination stood at 51.37 per cent. The department has prepared to re-tender the balance works and expects to resume construction once sanction and procurement processes are completed.