Govt opens up highway projects for mid-sized firms

08 Dec 2020 Editorial Team

The recent relaxations by the government by increasing participation from a larger set of bidders are likely to intensify competition in highways, roads, bridges and tunnelling projects, as they enable mid-sized firms to participate in the bidding process. As the eligibility of multiple construction contractors has been hindered by the global pandemic, these relaxations will provide the much-needed relief.

As a part of the relaxations provided, the government has slashed the minimum net worth criteria limit to 15% from 25% of the projected engineering, procurement, construction (EPC) project value in the preceding financial year for bidders of national highway projects. The definition of core sector has been expanded to include the construction of hotels, warehouses, stadiums, oil and gas, hospitals, smart cities, silos, and commercial set-up works.

Some of the measures for mid-sized construction companies include relaxation of technical eligibility criteria for tunnelling, bridge works; extension of concessions for all road projects; and relaxation of eligibility criteria for road EPC projects.

The reform may also help with bank credit, which has been shrinking for the sector since even before the onset of the pandemic. After the coronavirus pandemic severely affected the liquidity of infrastructure developers, the government has decreased the amount of performance guarantee for all construction contracts to 3% of the value of the respective contracts, from the extant levels of 5-10%. This reduction is valid for all existing contracts and will continue to remain so for all contracts awarded until the end of next year. It has been implemented to ease liquidity concerns and ensure timely execution of projects.

Infrastructure Urban

07 Nov 2025

Welspun Enterprises Wins 910 MLD Panjrapur WTP Contract

Welspun Enterprises (WEL), the infrastructure and energy arm of Welspun World, has secured a major contract from the Brihanmumbai Municipal Corporation (BMC) to design, build and operate a 910 million litres per day (MLD) Water Treatment Plant (WTP) at Panjrapur, Maharashtra.Valued at approximately Rs 31.45 billion, the project encompasses end-to-end civil, mechanical, electrical and instrumentation works, including the construction of a treated water sump and pumping station. Of the total value, nearly Rs 11.56 billion is allocated to Operations & Maintenance (O&M), with an additional..

Mitsubishi Power Wins Boiler Upgrade Contract for O Mon 1 Plant

Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, (MHI), has been awarded a contract to support the oil-to-natural-gas fuel conversion at the O Mon 1 Thermal Power Plant in Can Tho, southern Vietnam. As the OEM of the plant’s existing boiler, Mitsubishi Power will supply key equipment—including new gas burners—and implement a selective catalytic reduction (SCR) system to reduce NOx emissions and help the plant meet stricter environmental standards.The O Mon 1 facility includes two 330 MW units that commenced operations in 2009 and 2015, with all major equipment or..

Liebherr’s 10,000th XPower Wheel Loader Joins BERGER’s Fleet

BERGER Rohstoffe GmbH has welcomed the 10,000th Liebherr XPower wheel loader to its operations at the Schlag granite quarry in Passau. The milestone machine, officially handed over at Liebherr’s Bischofshofen plant in May 2025, underscores the long-standing partnership between BERGER, Liebherr, and the Beutlhauser Group. Equipped with Liebherr’s signature power-split travel drive, the new L 580 XPower is already delivering strong results under demanding quarry conditions.At the Schlag quarry, BERGER Rohstoffe processes approximately 200,000 tonnes of Bayerwald granite annually into high-qu..