Citing “essential lapses” that occurred attributable to lack of due diligence, the Ministry of Street Transport and Highways (MoRTH) has issued new directives to reinforce oversight on Nationwide Freeway (NH) works carried out by state public works departments and highway development departments (PWDs/RCDs).
The brand new directive has considerably elevated the function for the ministry’s regional officers (ROs) within the venture lifecycle, from bid preparation to managing authorized disputes. Together with Nationwide Highways Authority of India (NHAI) and Nationwide Highways & Infrastructure Improvement Company Ltd. (NHIDCL), state PWDs/RCDs are different key businesses who implement highway tasks for MoRTH.
“It has come to the discover of the Ministry that in a number of tasks pertaining to NH works applied by State PWDs/RCDs, essential lapses have occured attributable to lack of due diligence…Such lack of due diligence has led to pointless contractual disputes, authorized complexities and monetary liabilities for the central authorities,” states the round dated Might 16, 2025.
“It has additionally been noticed that ROs are typically neither consulted nor concerned throughout the bidding course of or whereas defending contractual disputes earlier than Arbitration Tribunals or Courts, whereby such disputes are handled mechanically typically with out adequately safeguarding the curiosity of the central authorities or aligning with the Ministry’s place,” reads the letter additional.
Paying attention to the scenario, the ministry stated that for all NH venture works (together with these costing lower than Rs. 100 crore however excluding upkeep works), the bid paperwork ready by state PWDs/RCDs should bear thorough scrutiny by the involved RO previous to the finalisation of bids.
ROs will look at the bid paperwork for any anomalies, inconsistencies or deficiencies, notably with respect to portions, schedules, specs, and contract situations.
“It’s crucial that ROs stay actively concerned in all authorized contractual disputes adjudication processes together with arbitration issues associated to NH works. State PWDs/RCDs shall not pursue such issues independently with out session with ROs,” stated the Ministry.
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A senior official of MoRTH stated {that a} detailed guideline will quickly be issued by the Ministry on this regard. The Ministry additionally permitted ROs might interact authorized professional from NHAI-empanelled legislation companies for recommendation and help.
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