PAC Demands CAG Audit of NHAI in Kerala
ROADS & HIGHWAYS

PAC Demands CAG Audit of NHAI in Kerala

The Parliament’s Public Accounts Committee (PAC) has issued a sharp critique of the National Highways Authority of India’s (NHAI) operations in Kerala, calling for an immediate audit by the Comptroller and Auditor General (CAG).
PAC Chairman and Congress MP K.C. Venugopal confirmed that the decision followed a detailed review conducted by the committee. The PAC’s latest report, tabled in Parliament, highlights serious concerns ranging from design flaws to questionable subcontracting practices.
The report revealed that NHAI itself admitted to a design flaw at Kooriyad in Malappuram district. The committee recommended strict action against officials responsible for such lapses and urged that negligent companies be blacklisted from future contracts.
Particular criticism was directed at subcontracting practices. The Kadambattukonam–Kazhakootam stretch of the National Highway was awarded for Rs 368.4 billion but subcontracted for just Rs 79.5 billion. A wider review of Kerala’s projects showed subcontracting averaged only 54 per cent of the original tender value, raising fears of compromised quality and weak accountability.
The PAC further recommended that the Ministry of Road Transport and Highways evaluate subcontracting practices and strengthen internal mechanisms for project design and approval within NHAI. To ensure greater transparency in toll collection, the committee also proposed the creation of a dedicated regulatory authority to determine toll rates.
Kerala’s highway projects have faced repeated setbacks due to land acquisition challenges, poor designs, and quality concerns. The NH-66 project, in particular, came under scrutiny in May when sections of the under-construction highway collapsed in three districts, sparking political controversy.
Both state Public Works Minister P.A. Mohammed Riyas and Chief Minister Pinarayi Vijayan were criticised for their handling of the crisis. Venugopal accused Vijayan of taking credit for the project until its collapse, then avoiding a site inspection despite being in Malappuram at the time.
In June, Vijayan and Riyas sought support in Delhi, securing assurances from Union Minister Nitin Gadkari that the damaged stretches would be rebuilt and the project delivered as a “New Year gift” for Kerala.
With the PAC now demanding a CAG audit, the controversy is expected to intensify, drawing political rivals into renewed confrontation over Kerala’s highway projects.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The Parliament’s Public Accounts Committee (PAC) has issued a sharp critique of the National Highways Authority of India’s (NHAI) operations in Kerala, calling for an immediate audit by the Comptroller and Auditor General (CAG).PAC Chairman and Congress MP K.C. Venugopal confirmed that the decision followed a detailed review conducted by the committee. The PAC’s latest report, tabled in Parliament, highlights serious concerns ranging from design flaws to questionable subcontracting practices.The report revealed that NHAI itself admitted to a design flaw at Kooriyad in Malappuram district. The committee recommended strict action against officials responsible for such lapses and urged that negligent companies be blacklisted from future contracts.Particular criticism was directed at subcontracting practices. The Kadambattukonam–Kazhakootam stretch of the National Highway was awarded for Rs 368.4 billion but subcontracted for just Rs 79.5 billion. A wider review of Kerala’s projects showed subcontracting averaged only 54 per cent of the original tender value, raising fears of compromised quality and weak accountability.The PAC further recommended that the Ministry of Road Transport and Highways evaluate subcontracting practices and strengthen internal mechanisms for project design and approval within NHAI. To ensure greater transparency in toll collection, the committee also proposed the creation of a dedicated regulatory authority to determine toll rates.Kerala’s highway projects have faced repeated setbacks due to land acquisition challenges, poor designs, and quality concerns. The NH-66 project, in particular, came under scrutiny in May when sections of the under-construction highway collapsed in three districts, sparking political controversy.Both state Public Works Minister P.A. Mohammed Riyas and Chief Minister Pinarayi Vijayan were criticised for their handling of the crisis. Venugopal accused Vijayan of taking credit for the project until its collapse, then avoiding a site inspection despite being in Malappuram at the time.In June, Vijayan and Riyas sought support in Delhi, securing assurances from Union Minister Nitin Gadkari that the damaged stretches would be rebuilt and the project delivered as a “New Year gift” for Kerala.With the PAC now demanding a CAG audit, the controversy is expected to intensify, drawing political rivals into renewed confrontation over Kerala’s highway projects.

Next Story
Infrastructure Energy

PSA Mumbai Doubles Capacity to 4.8m TEUs With Phase 2

Prime Minister Narendra Modi and Singaporean Prime Minister Lawrence Wong on Thursday virtually inaugurated Phase 2 of the Bharat Mumbai Container Terminal (PSA Mumbai), developed by PSA International at the Jawaharlal Nehru Port Authority (JNPA) in Navi Mumbai.With the commissioning of Phase 2, PSA Mumbai has doubled its annual handling capacity to 4.8 million TEUs, making it India’s largest container terminal. The terminal, spanning 2,000 metres of continuous quay length, has been designed to handle multiple mega container vessels simultaneously, supporting both domestic and global trade f..

Next Story
Infrastructure Transport

JNPA Doubles Container Capacity With Rs 79.2 Billion Terminal

In a major boost to India’s maritime infrastructure, Prime Minister Narendra Modi and Singaporean Prime Minister Lawrence Wong virtually inaugurated the second phase of the PSA Bharat Mumbai Container Terminal (BMCT) at Jawaharlal Nehru Port Authority (JNPA) on Thursday.With this commissioning, BMCT becomes India’s largest standalone container terminal, doubling its handling capacity from 2.4 million TEUs to 4.8 million TEUs (twenty-foot equivalent units). This milestone also establishes JNPA as the country’s largest container port by capacity.The Rs 79.2 billion project was developed un..

Next Story
Infrastructure Transport

Concor to Operate New Container Terminal at Bhavnagar Port

The Container Corporation of India (Concor) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) to operate and maintain the upcoming container terminal on the northside of Bhavnagar Port, Gujarat.Under the MoU, Concor will serve as the terminal operator, overseeing operations, management, and marketing of the facility. This move marks Concor’s strategic foray into direct port operations, aligning with its goal of forward integration in the logistics value chain. The detailed terms and conditions of the agreement are currently being finalised.The upcoming..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?