Highways Ministry Invokes Catastrophic Failure Clause
ROADS & HIGHWAYS

Highways Ministry Invokes Catastrophic Failure Clause

The Ministry of Road Transport and Highways has invoked a newly introduced catastrophic failure provision against two highway developers following major structural failures on National Highways projects. The provision allows highway-owning agencies to bar developers from bidding for new projects for two years and assign negative ratings that could affect future contracts.

The first case concerns the four-lane Poondiankuppam-Sattanatharupam section of NH-45, now designated NH-32, in Tamil Nadu. The project, covering km 67 to km 123, was awarded under the hybrid annuity model to Poonadinkuppam Sattanathapuram Section, promoted by Oriental, under a concession agreement. Its bid project cost was Rs. 21.2 bn, with January 20, 2022, set as the appointed date and January 19, 2024, as the scheduled completion date.

The ministry appointed Theme Engineering Services as the independent engineer. Its order recorded that at approximately 0030 hours on April 6, 2026, around 2 metres of substantial settlement was observed in the pavement quality concrete on the main carriageway near the light vehicle underpass at km 105+220 on the Kollidam Bypass. The incident also involved bulging, cracking and horizontal displacement of the reinforced earth.

The second case relates to the widening and strengthening of around 45 km of NH-727B in Uttar Pradesh, between Nawalpur and Sikanderpur. The project was sanctioned for Rs. 20.61 bn, while engineering, procurement and construction work was awarded to a joint venture of VRC Constructions (India) and R & C Infra Engineers for Rs. 6.13 bn. Technocrats Advisory Services was appointed as the authority engineer.

The ministry said the second incident occurred at about 1015 hours on March 25, 2026, during reinforcement work for a viaduct over the River Ghaghra at chainage km 77+220. A section of the reinforcement cage collapsed during lifting and erection, falling on workers at the site. The accident resulted in two deaths and grievous injury to one worker, prompting the ministry to classify the event under the catastrophic failure provision.

The Ministry of Road Transport and Highways has invoked a newly introduced catastrophic failure provision against two highway developers following major structural failures on National Highways projects. The provision allows highway-owning agencies to bar developers from bidding for new projects for two years and assign negative ratings that could affect future contracts. The first case concerns the four-lane Poondiankuppam-Sattanatharupam section of NH-45, now designated NH-32, in Tamil Nadu. The project, covering km 67 to km 123, was awarded under the hybrid annuity model to Poonadinkuppam Sattanathapuram Section, promoted by Oriental, under a concession agreement. Its bid project cost was Rs. 21.2 bn, with January 20, 2022, set as the appointed date and January 19, 2024, as the scheduled completion date. The ministry appointed Theme Engineering Services as the independent engineer. Its order recorded that at approximately 0030 hours on April 6, 2026, around 2 metres of substantial settlement was observed in the pavement quality concrete on the main carriageway near the light vehicle underpass at km 105+220 on the Kollidam Bypass. The incident also involved bulging, cracking and horizontal displacement of the reinforced earth. The second case relates to the widening and strengthening of around 45 km of NH-727B in Uttar Pradesh, between Nawalpur and Sikanderpur. The project was sanctioned for Rs. 20.61 bn, while engineering, procurement and construction work was awarded to a joint venture of VRC Constructions (India) and R & C Infra Engineers for Rs. 6.13 bn. Technocrats Advisory Services was appointed as the authority engineer. The ministry said the second incident occurred at about 1015 hours on March 25, 2026, during reinforcement work for a viaduct over the River Ghaghra at chainage km 77+220. A section of the reinforcement cage collapsed during lifting and erection, falling on workers at the site. The accident resulted in two deaths and grievous injury to one worker, prompting the ministry to classify the event under the catastrophic failure provision.

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