Government Revises Highway Bidding And Investment Framework
ROADS & HIGHWAYS

Government Revises Highway Bidding And Investment Framework

The Government, through the Ministry of Road Transport and Highways, is responsible for national highway development and will prioritise access controlled National High Speed Corridors, ring roads and bypasses for cities with population of more than one lakh, equivalent to 0.1 million (mn), and those exceeding five lakh, equivalent to 0.5 million (mn). It will also focus on coastal roads and connectivity to ports, airports and industrial nodes. These measures are intended to broaden investment opportunities and improve logistics efficiency.

To attract private participation the Government has revised the Model Concession Agreement for public private partnership (PPP) projects and updated model contracts for monetisation of National Highways on a Toll Operate and Transfer basis. It has promoted a public infrastructure investment trust and convened stakeholder conferences with concessionaires, financiers and government bodies to showcase opportunities and address investor concerns. These initiatives aim to make projects more appealing to fund managers and contractors.

Major amendments to bidding and concession documents for build operate transfer projects enhance bidder eligibility by allowing fund houses to qualify on financial strength, subject to their engagement of engineering, procurement and construction contractors with requisite experience. Contractual clauses have been clarified on change of ownership, target traffic, damages, compensation for breach and force majeure costs, payment of construction support in capacity augmentation and change of scope. The changes reflect lessons from past litigations and seek greater contractual certainty.

A provision permits payment of termination compensation before commercial operation date where physical progress of the project is 20 per cent or more, offering protection to concessionaires and lenders. Debt determination has been streamlined to reduce ambiguity for financiers. The dispute resolution framework has been simplified with the dispute resolution board abolished and disputes below Rs 100 mn to be referred to arbitration while those of Rs 100 mn and above will go to conciliation or mediation.

The Union Minister of Road Transport and Highways, Nitin Gadkari, provided the information in a written reply to the Rajya Sabha. The measures are intended to improve project predictability and catalyse private investment in national highway infrastructure.

The Government, through the Ministry of Road Transport and Highways, is responsible for national highway development and will prioritise access controlled National High Speed Corridors, ring roads and bypasses for cities with population of more than one lakh, equivalent to 0.1 million (mn), and those exceeding five lakh, equivalent to 0.5 million (mn). It will also focus on coastal roads and connectivity to ports, airports and industrial nodes. These measures are intended to broaden investment opportunities and improve logistics efficiency. To attract private participation the Government has revised the Model Concession Agreement for public private partnership (PPP) projects and updated model contracts for monetisation of National Highways on a Toll Operate and Transfer basis. It has promoted a public infrastructure investment trust and convened stakeholder conferences with concessionaires, financiers and government bodies to showcase opportunities and address investor concerns. These initiatives aim to make projects more appealing to fund managers and contractors. Major amendments to bidding and concession documents for build operate transfer projects enhance bidder eligibility by allowing fund houses to qualify on financial strength, subject to their engagement of engineering, procurement and construction contractors with requisite experience. Contractual clauses have been clarified on change of ownership, target traffic, damages, compensation for breach and force majeure costs, payment of construction support in capacity augmentation and change of scope. The changes reflect lessons from past litigations and seek greater contractual certainty. A provision permits payment of termination compensation before commercial operation date where physical progress of the project is 20 per cent or more, offering protection to concessionaires and lenders. Debt determination has been streamlined to reduce ambiguity for financiers. The dispute resolution framework has been simplified with the dispute resolution board abolished and disputes below Rs 100 mn to be referred to arbitration while those of Rs 100 mn and above will go to conciliation or mediation. The Union Minister of Road Transport and Highways, Nitin Gadkari, provided the information in a written reply to the Rajya Sabha. The measures are intended to improve project predictability and catalyse private investment in national highway infrastructure.

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