Eligibility criteria to develop highway projects simplified by Centre
ROADS & HIGHWAYS

Eligibility criteria to develop highway projects simplified by Centre

Businesses that have built linear infrastructure including airport runways, railway tracks, container yards, metro rail and ports are eligible to compete on capital-intensive highway projects. This was made feasible after the centre loosened the requirements for eligibility that bidders for highway projects under the public private partnership (PPP) mode. However, the decision from the Ministry of Road Transport and Highways also stated that in order to build motorways under the Build, Operate, Transfer (BOT), and Hybrid Annuity Model (HAM) modes, bidders must have a credit rating of BBB and above. This new need has been added to the PPP project eligibility requirements.

Highways are vital infrastructure, thus the centre wants to make sure that only businesses with a track record of large-scale project completion are permitted to submit bids. This precaution is taken in order to prevent projects from being hampered by fly-by-night contractors who lack the necessary skills to complete them and who may submit unrealistic bids. Bidders must be able to meet the technical and financial requirements of the eligibility criteria. The bidder must have a minimum net worth requirement and have experience working on projects in the associated core and highways sectors. Also, businesses must guarantee that they have executed at least one similar project worth 20% of the total project cost.

It has been determined that the core sector for HAM mode, where the centre bears a portion of the cost, will include projects with the names Rural Infrastructure Development Fund (RIDF), Pradhan Mantri Gram Sadak Yojana (PMGSY) roads, link roads, city roads, rural roads, sector or municipality roads, real estate projects that demonstrate road development, and building of bridges or culverts, among others. Also, it has been decided that maintenance projects would not be evaluated under the HAM project eligibility requirements.

New requirements have been added for standalone specialised projects under BOT, which calls for a greater outlay of cash by the private concessionaire. The bidder must have finished at least one major Bridge, Road Over Bridge (RoB), or Flyover project in the ten financial years prior to the bid due date if the cost of a specialised project is more than Rs 10 billion. Also, it has been established that the finished bridge must have a span that is at least 50% longer than the longest span of the project's proposed structure.

Businesses that have built linear infrastructure including airport runways, railway tracks, container yards, metro rail and ports are eligible to compete on capital-intensive highway projects. This was made feasible after the centre loosened the requirements for eligibility that bidders for highway projects under the public private partnership (PPP) mode. However, the decision from the Ministry of Road Transport and Highways also stated that in order to build motorways under the Build, Operate, Transfer (BOT), and Hybrid Annuity Model (HAM) modes, bidders must have a credit rating of BBB and above. This new need has been added to the PPP project eligibility requirements. Highways are vital infrastructure, thus the centre wants to make sure that only businesses with a track record of large-scale project completion are permitted to submit bids. This precaution is taken in order to prevent projects from being hampered by fly-by-night contractors who lack the necessary skills to complete them and who may submit unrealistic bids. Bidders must be able to meet the technical and financial requirements of the eligibility criteria. The bidder must have a minimum net worth requirement and have experience working on projects in the associated core and highways sectors. Also, businesses must guarantee that they have executed at least one similar project worth 20% of the total project cost. It has been determined that the core sector for HAM mode, where the centre bears a portion of the cost, will include projects with the names Rural Infrastructure Development Fund (RIDF), Pradhan Mantri Gram Sadak Yojana (PMGSY) roads, link roads, city roads, rural roads, sector or municipality roads, real estate projects that demonstrate road development, and building of bridges or culverts, among others. Also, it has been decided that maintenance projects would not be evaluated under the HAM project eligibility requirements. New requirements have been added for standalone specialised projects under BOT, which calls for a greater outlay of cash by the private concessionaire. The bidder must have finished at least one major Bridge, Road Over Bridge (RoB), or Flyover project in the ten financial years prior to the bid due date if the cost of a specialised project is more than Rs 10 billion. Also, it has been established that the finished bridge must have a span that is at least 50% longer than the longest span of the project's proposed structure.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code