Norms relaxed for working capital needs of road builders

01 Nov 2019 CW Team

The Ministry of Road Transport and Highways (MoRTH) has reportedly decided to relax norms to release partial payment or a working capital advance to road and highway builders for the work they have carried out, even if the builder has failed to achieve the construction milestone set by the authorities. The move is aimed at improving the liquidity of builders and to help complete projects stuck due to a funding crunch.

As reported, the provision for the advance will be extended to all highway projects executed with 100 per cent government funding or EPC (Engineering, Procurement, Construction) contracts as well as for projects under the Hybrid Annuity Model (HAM) mode. For contracts under the EPC model, the government releases the entire payment as and when a builder achieves the project milestones during construction. In the case of projects under the HAM mode, government agencies pay only 40 per cent of the cost during construction in five equal instalments. The remaining amount is released in 30 biannual instalments, which commences six months after the project is completed. As per a circular released by MoRTH on the norms relaxed, contractors availing this advance payment will have to pay the interest when the final payment is released, once the set milestone is achieved. For instance, NHAI or any other road owning agency can give the interest bearing working capital advance to the road builder even if it has completed only 5 km of a highway stretch against the set milestone of 10 km for release of payment.

Infrastructure Urban

06 Apr 2026

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..