Addressing Challenges in Highway Infrastructure: Parliamentary Panel’s Key Recommendations

The Parliamentary Standing Committee on Transport, Tourism, and Culture has released a comprehensive report on the Ministry of Road Transport and Highways (MoRTH) regarding the Demand for Grants for 2025-26, highlighting funding shortfalls, land acquisition disputes, financial instability among contractors, and procedural inefficiencies. The panel has recommended a dual-track approach for efficient project execution while emphasizing stricter financial screening and accountability measures for contractors.

The committee identified several persistent challenges that have led to significant delays in highway projects across the country. Some of them are:

1. Funding Shortages: The National Highway Authority of India (NHAI) faced a budget reduction of ₹17,537 crore against its projected requirement of ₹187,803 crore, delaying the land acquisition process.
2. Project Delays: As of July 224, 697 highway projects were stalled, with 35% due to land acquisition disputes and 30% awaiting railway clearances.
3. Poor Quality of Construction and Contractor Accountability: The committee criticized MoRTH for weak enforcement of defect liability clauses, which allow contractors to escape accountability for substandard construction and inadequate maintenance.
4. Lack of Proper Screening Before Awarding Contracts: The report expressed dissatisfaction with the ministry’s failure to conduct rigorous financial screening before awarding contracts, leading to projects being assigned to contractors lacking adequate financial capacity, further exacerbating delays and cost overruns.

To address these challenges, the committee has put forth the following recommendations:

1. Dual-Track Approach for Project Management: Implementing portfolio analysis, a centralized clearance unit, and data-driven planning to optimize costs and efficiency.
2. Ensuring Efficient Project Approvals and Execution: Ensuring that 90% of required land and statutory clearance are secured before awarding contracts, with financial incentives and penalties to enforce timelines.
3. Strengthening Contractor Accountability: The committee recommended stricter enforcement of defect liability clauses, extended defect liability periods as implemented under BOT and HAM models, a tiered contractor rating system to access their financial capacity, and a public registry to track non-compliant contractors and ensure accountability.
4. Enhancing Financial Screening for Contractors: Preventing financially unviable contractors from securing projects while ensuring timely payments and better credit access.

The committee recommended a three-tier prioritization framework to classify and address accident-prone black spots based on severity and risk exposure along with strengthening monitoring systems to track infrastructure progress and ensure timely interventions.

The parliamentary panel’s report underscores the urgent need for structural reforms in highway construction to minimize delays, control costs, and improve quality. Moving forward, MoRTH must implement these recommendations to enhance connectivity, foster economic development, and improve road safety across India.