Govt plans Rs 5 Lakh/km Threshold for road project contracts

13 Feb 2024 CW Team

The government plans to establish an Rs 5 lakh per kilometre threshold for awarding contracts for the preparation of Detailed Project Reports (DPRs) for road projects. This marks a significant increase from the current average of Rs 1 lakh per kilometre and signifies a shift from the least-cost to a fixed-cost model, according to reports from the Economic Times.

Presently, bidders often quote the minimum price to secure contracts, leading to the production of low-quality DPRs. This, in turn, results in modifications to the scope of work, variations, time delays, and cost overruns, ultimately causing project delays. To address this issue, the government is proposing a minimum price threshold for contract awards to enhance the quality of DPRs, aligning them with international standards and aiming to prevent delays in projects.

Road Transport Minister Nitin Gadkari has expressed concerns about the substandard DPRs prepared by Indian companies, linking them to project delays and road accidents. The Ministry of Road Transport and Highways (MoRTH) is currently seeking feedback from stakeholders on these proposed changes and is expected to finalise new rules for DPRs soon.

The suggested minimum price is based on global norms related to the salaries of skilled personnel and other relevant factors. Although a final decision is pending, the government believes that setting a threshold will encourage the submission of high-quality DPRs.

Acknowledging that a fivefold increase in DPR costs may pose an additional financial burden, the government remains optimistic that the long-term benefits derived from improved DPR quality and resulting savings will outweigh these initial costs.

Infrastructure Transport

11 May 2026

Shivraj Chouhan Launches PMGSY IV and Announces Package for Madhya Pradesh

Union Minister Shivraj Singh Chouhan launched the Pradhan Mantri Gram Sadak Yojana (PMGSY) IV at Bhairunda in Sehore district during the 25 year celebrations and announced a development package for Madhya Pradesh. The programme was organised by the Union Ministry of Rural Development and attended by Chief Minister Dr Mohan Yadav, ministers of state, state ministers, legislators and senior officials from the centre and the state. The minister said the central government under the Prime Minister is committed to strengthening rural livelihoods through improved connectivity, housing and women's in..

DMR Engineering Reports FY 25-26 Financial Results

DMR Engineering reported its half year results for the financial year ended 31 March 2026 and published full year figures on a standalone basis. Standalone revenue from operations decreased by 2.01 per cent year-over-year to Rs 102.58 million (mn), while profit after tax declined by 43.94 per cent to nine point five six mn, leaving a profit after tax margin of nine point zero five per cent. Earnings per share stood at Rs zero point nine two, a fall of 44.71 per cent year-over-year. The company attributed part of the decline to one-off provisioning for bad debts and additional financing charges..

Atlanta Electricals Posts Strong FY26 Growth And Debt Free Finish

Atlanta Electricals reported audited consolidated results for the quarter and year ended 31 March 2026. The company recorded significant year-on-year revenue growth driven by capacity ramp-up at new facilities and higher utilisation at legacy plants. The announcement summarised operating improvements and strategic milestones achieved during the year. For Q4 the company reported revenue of Rs 7.48 bn and for FY26 revenue of Rs 18.52 bn, representing robust growth versus the prior year. EBITDA in Q4 was Rs. 1.49 bn and Rs. 3.44 bn for the full year, with margins expanding to 20 per cent in the q..