The National Highways Authority of India has tightened the framework for Automated and Intelligent Machine-Aided Construction (AI-MC) through Policy Circular No. 11.109/2026 dated 28 August 2026. Mandatory AI-MC is limited to highway projects with a continuous length over 20 km and Engineering, Procurement and Construction (EPC) or civil construction cost above Rs 5 billion (bn). Standalone bridges, road over bridges, tunnels, short bypasses below 10 km and overlay projects without base earthwork reconstruction are exempt and adoption below thresholds remains optional. For embankment, subgrade and granular sub base construction the circular requires full AI-MC deployment across all grades. For water bound macadam and subsequent bituminous layers motor graders are barred and layers must be laid using UTS-guided three-dimensional (3D) smart pavers. Contractors must prepare a comprehensive 3D digital model covering the lowest embankment through every intermediate layer and lift, with selective deployment treated as non-compliant and liable to trigger change or reduction in scope under relevant EPC or Hybrid Annuity Model (HAM) provisions. A digital payment gate will require contractors to provide secure cloud access to the Independent Engineer, Project Director and Regional Officer so daily telemetry can be cross-verified with Requests for Inspection. Manual override, signal loss or omission of telemetry during machine operation will be flagged as a critical non-conformity and unmapped stretches will not qualify for interim or milestone payments. The circular mandates a 200 m trial stretch before full earthwork, daily calibration of GNSS and UTS systems and immediate suspension where field verification shows deviations beyond permissible staking tolerances. Contractors must provide independent survey hardware to NHAI engineers for spot checks and hand over raw data, 3D constructible models, detailed calculations, Design Basis Reports and native highway-design files within seven days of request without additional cost. A fully audited Digital As-Built Model of Record, including utilities and asset locations, must be submitted at completion. The amendments apply immediately to projects meeting the prescribed thresholds and will affect contractor payments, equipment deployment and ownership of digital project data, requiring adjustments in planning, procurement and contract management.