NHAI Wins Arbitration Over Kamrej Chalthan Project

15 May 2026 CW Team

The tribunal awarded only Rs five point four million (mn) against claims of around Rs 1,744.9 mn raised by the contractor, according to the NHAI, a differential that the authority said translated into significant fiscal savings. The claim had been submitted in relation to alleged additional costs and remedial works following the widening contract. The authority said that detailed documentation and technology-driven oversight were central to rebutting the larger claim.

The dispute related to the National Highway project for widening a 15 km stretch of the Kamrej-Chalthan section of NH-48 from four lanes to six lanes, which incorporated long-term remedial measures for four black spots on the Kamrej-Bharuch section. The project required close supervision during construction and maintenance phases, the authority said, and digitisation tools enabled precise tracking of timelines, quantities and contractual obligations. The NHAI indicated that such tools reduced ambiguity and strengthened its case in arbitration.

Officials said the outcome demonstrates the fiscal benefits of stringent contract governance and may inform procedures on future highway projects. The authority said that continued investment in digital systems and comprehensive record keeping would be prioritised to limit disputes and protect public funds. The NHAI concluded that evidence-based management contributes to efficient infrastructure delivery and dispute mitigation.

The National Highway Authority of India (NHAI) successfully defended an arbitration matter linked to the six-laning of the Kamrej-Chalthan section of National Highway 48 in Gujarat, securing a ruling that the authority said resulted in substantial savings of public funds. The decision by the Arbitral Tribunal reduced the contractor claim to a fraction of the original demand and underlined the importance of robust contract records. The authority highlighted the role of digital monitoring and evidence-based project management in resolving complex disputes. The tribunal awarded only Rs five point four million (mn) against claims of around Rs 1,744.9 mn raised by the contractor, according to the NHAI, a differential that the authority said translated into significant fiscal savings. The claim had been submitted in relation to alleged additional costs and remedial works following the widening contract. The authority said that detailed documentation and technology-driven oversight were central to rebutting the larger claim. The dispute related to the National Highway project for widening a 15 km stretch of the Kamrej-Chalthan section of NH-48 from four lanes to six lanes, which incorporated long-term remedial measures for four black spots on the Kamrej-Bharuch section. The project required close supervision during construction and maintenance phases, the authority said, and digitisation tools enabled precise tracking of timelines, quantities and contractual obligations. The NHAI indicated that such tools reduced ambiguity and strengthened its case in arbitration. Officials said the outcome demonstrates the fiscal benefits of stringent contract governance and may inform procedures on future highway projects. The authority said that continued investment in digital systems and comprehensive record keeping would be prioritised to limit disputes and protect public funds. The NHAI concluded that evidence-based management contributes to efficient infrastructure delivery and dispute mitigation.

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