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Mint
5 days ago
- Business
- Mint
Facing road construction quality issues, Centre takes away state PWD and state department's powers for bidding out NHs
The Centre has withdrawn the powers of state PWDs (public works departments) and road construction departments (RCDs) to independently issue bid documents for national highway projects in their states, according to a directive by the ministry of road transport and highways (MoRTH). Instead, they will now consult MoRTH's regional officers (ROs), who will evaluate all state-issued bids, recommend necessary changes, and actively participate in resolving legal and arbitration disputes related to national highway works, the directive said, a copy of which was seen by Mint. The new process will be applicable to all highway projects, including those costing less than ₹100 crore but excluding maintenance works. Further, ROs would need to be consulted at every step in the case of contractual disputes and arbitration. MoRTH is preparing a separate, detailed standard operating procedure (SoP) for dealing with arbitration matters that will soon be issued. Also read: Bhel likely to be tendering agency for EV charging stations under PM E-drive Queries emailed to MoRTH remained unanswered. The National Highways Authority of India (NHAI) is responsible for highway construction across the country. However, it often works with state-level agencies for bidding, processing, and building specific highway sections within their states, along with other agencies like NHIDCL and MoRTH's construction wing, The ministry's directive pointed out that 'in several projects pertaining to NH works implemented by State PWDs/RCDs, critical lapses have occurred due to lack of due diligence". That has led to disputes, legal complexities and financial liabilities for the central government, the directive noted, adding that ROs are not consulted or involved during bidding or in the courts, and the disputes are dealt with mechanically without safeguarding the interests of the Centre. The directive has been sent by the MoRTH to secretaries and chief engineers of all states and Union territory PWDs, RCDs and departments dealing with national highways. According to Jagannarayan Padmanabhan, senior director & global head at Crisil Intelligence, scrutinising all proposals from all state governments has its merits and demerits. 'The merits of such an exercise could mean avoidance of construction of parallel and competing roads, having a uniform bid awarding process across the country, and standardization of processes and bid documents, among other things," Padmanabhan said, adding that on the flip side, an additional layer of scrutiny and capacity augmentation at the central level would be needed. Suprio Banerjee, vice president and co-group head at rating agency Icra Ltd said that these measures are likely to increase the award timelines, but project execution is not likely to be hampered while adhering to the norms or standards stipulated by the road ministry. Also read: Nitin Pai: Train more civil engineers to solve our infrastructure crisis 'Also, the involvement of ROs in all legal contractual processes is expected to streamline the disputes adjudication process while avoiding the need for repetition," Banerjee said. 'Land acquisition being a state subject, the coordination between central and state government departments remains crucial to expedite the ROW and other associated approvals." However, Shailesh Agarwal, partner for risk consulting (infrastructure) at EY India sounded a cautionary note when he said that uniform documents don't necessarily mean smoother highways. 'Ultimately, true quality improvement depends on regular quality controls, digitalisation, and accountability at the ground level," he said. 'Due care must be taken to ensure that the new system doesn't become a fresh bottleneck." The disputes process With regard to contractual disputes and arbitration, it has been decided that state PWDs/RCDs would not pursue such matters independently without consultation with ROs. All replies, statements of defence, and written submissions intended for courts / arbitrations shall be vetted by the ROs and returned after scrutiny with comments or amendments before submission within a period of 15 days failing which the replies, statements or submissions may be deemed cleared. The ROs would also be free to engage legal experts from NHAl-empanelled law firms for advice and support. The highway building plan In FY26, MoRTH proposes to construct about 10,000 km of highways, per the outcome budget 2025-26. As highway construction in the country matures, the liberal growth in construction is expected to slow and the focus will shift towards highway maintenance and enduring quality of construction. Out of 146,195 km length of national highways (NH) network in the country, damages have been reported in about 1% of the stretch every year, according to data from MoRTH. The conditions of NHs are assessed from time to time by the MoRTH and its various executing agencies. Also read: Ajit Ranade: West Asia's upheaval intensifies India's challenges of geopolitics The maintenance works on NHs are accordingly taken up from time to time to keep the NHs in traffic-worthy condition. According to MoRTH, the ministry spent nearly ₹6,500 crore on highway repair and maintenance in FY24. A similar level of expenditure is also expected to be incurred in the current fiscal.
Time of India
20-05-2025
- Business
- Time of India
MoRTH mandates tighter oversight on state-implemented NH projects
The Ministry of Road Transport and Highways (MoRTH) has issued directives to expand oversight of regional officers on National Highway works implemented by state public works departments and road construction departments. In a circular, the highways ministry said critical lapses have occurred due to lack of due diligence in several projects pertaining to NH works implemented by state public works departments and road construction departments (PWDs/RCDs). According to the circular, the ministry's regional officers (ROs) are sometimes neither consulted nor involved during the bidding process or while defending contractual disputes before arbitration tribunals or courts, wherein such disputes are dealt with mechanically often without adequately safeguarding the interests of the Central government or aligning with the ministry's position. 'In order to prevent recurrence of such issues and to ensure greater due diligence in the bidding process... For all NH project works (including those costing less than Rs 100 crore but excluding maintenance works), the bid documents especially the Schedules prepared by State PWDs/RCDs shall be scrutinised by the concerned RO prior to invitation of bids,' it said. As per the circular, ROs shall examine the bid documents for any anomalies, inconsistencies, or deficiencies, particularly with respect to quantities, specifications, and contract conditions and also conditions imposed by the appraising and approving authority. 'It is imperative that ROs remain actively involved in all legal contractual disputes adjudication processes including arbitration matters related to NH works. 'State PWDs/RCDs shall not pursue such matters independently without consultation with ROs,' the circular said. It also said all replies, statements of defence, and written submissions intended for courts / arbitrations shall be vetted by the ROs and returned after scrutiny with comments or amendments, as the case may be, before submission within a period of 15 days failing which, the replies, statements or submissions may be deemed cleared. 'ROs shall ensure that these submissions are aligned with contractual terms or Ministry policy and protect the interests of the Central government,' the circular said. Where necessary, it said, ROs may engage legal experts from NHAI-empanelled law firms for advice and support.
The Hindu
20-05-2025
- Business
- The Hindu
Road ministry cites 'critical lapses', expands oversight on NH works implemented by states
The Ministry of Road Transport and Highways (MoRTH) has issued directives to expand oversight of regional officers on National Highway works implemented by state public works departments and road construction departments. In a circular, the Highways Ministry said critical lapses have occurred due to a lack of due diligence in several projects pertaining to NH works implemented by state public works departments and road construction departments (PWDs/RCDs). According to the circular, the ministry's regional officers (ROs) are sometimes neither consulted nor involved during the bidding process or while defending contractual disputes before arbitration tribunals or courts, wherein such disputes are dealt with mechanically often without adequately safeguarding the interests of the Central Government or aligning with the ministry's position. 'In order to prevent recurrence of such issues and to ensure greater due diligence in the bidding process... For all NH project works (including those costing less than ₹100 crore but excluding maintenance works), the bid documents, especially the Schedules prepared by State PWDs/RCDs shall be scrutinised by the concerned RO prior to the invitation of bids,' it said. As per the circular, ROs shall examine the bid documents for any anomalies, inconsistencies, or deficiencies, particularly with respect to quantities, specifications, and contract conditions and also conditions imposed by the appraising and approving authority. 'It is imperative that ROs remain actively involved in all legal contractual disputes adjudication processes including arbitration matters related to NH works. 'State PWDs/RCDs shall not pursue such matters independently without consultation with ROs,' the circular said. It also said all replies, statements of defence, and written submissions intended for courts / arbitrations shall be vetted by the ROs and returned after scrutiny with comments or amendments, as the case may be, before submission within a period of 15 days failing which, the replies, statements or submissions may be deemed cleared. 'ROs shall ensure that these submissions are aligned with contractual terms or Ministry policy and protect the interests of the Central Government,' the circular said. Where necessary, it said, ROs may engage legal experts from NHAI-empanelled law firms for advice and support.
Indian Express
19-05-2025
- Business
- Indian Express
‘Critical lapses occurred': Road Ministry expands oversight on NH works executed by States
Citing 'critical lapses' that occurred due to lack of due diligence, the Ministry of Road Transport and Highways (MoRTH) has issued new directives to enhance oversight on National Highway (NH) works carried out by state public works departments and road construction departments (PWDs/RCDs). The new directive has significantly increased the role for the ministry's regional officers (ROs) in the project lifecycle, from bid preparation to managing legal disputes. Along with National Highways Authority of India (NHAI) and National Highways & Infrastructure Development Corporation Ltd. (NHIDCL), state PWDs/RCDs are other key agencies who implement road projects for MoRTH. 'It has come to the notice of the Ministry that in several projects pertaining to NH works implemented by State PWDs/RCDs, critical lapses have occured due to lack of due diligence…Such lack of due diligence has led to unnecessary contractual disputes, legal complexities and financial liabilities for the central government,' states the circular dated May 16, 2025. 'It has also been observed that ROs are sometimes neither consulted nor involved during the bidding process or while defending contractual disputes before Arbitration Tribunals or Courts, wherein such disputes are dealt with mechanically often without adequately safeguarding the interest of the central government or aligning with the Ministry's position,' reads the letter further. Taking note of the situation, the ministry said that for all NH project works (including those costing less than Rs. 100 crore but excluding maintenance works), the bid documents prepared by state PWDs/RCDs must undergo thorough scrutiny by the concerned RO prior to the finalisation of bids. ROs will examine the bid documents for any anomalies, inconsistencies or deficiencies, particularly with respect to quantities, schedules, specifications, and contract conditions. 'It is imperative that ROs remain actively involved in all legal contractual disputes adjudication processes including arbitration matters related to NH works. State PWDs/RCDs shall not pursue such matters independently without consultation with ROs,' said the Ministry. A senior official of MoRTH said that a detailed guideline will soon be issued by the Ministry in this regard. The Ministry also permitted ROs may engage legal expert from NHAI-empanelled law firms for advice and support. Dheeraj Mishra is a Principal correspondent with The Indian Express, Business Bureau. He covers India's two key ministries- Ministry of Railways and Ministry of Road Transport & Highways. He frequently uses the Right to Information (RTI) Act for his stories, which have resulted in many impactful reports. ... Read More
