+
Govt plans Rs 5 Lakh/km Threshold for road project contracts
ROADS & HIGHWAYS

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

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.

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.

Next Story
Real Estate

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Next Story
Real Estate

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

Next Story
Real Estate

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?