Capacity Augmentation: NHAI Unveils SOPs for Project Approvals

In a significant move to enhance road safety, expand highway capacity, and strengthen infrastructure, the National Highways Authority of India (NHAI) has issued new guidelines under Policy Circular No. 12.37/2025, dated February 12, 2025. These guidelines aim to streamline decision-making, improve financial management, and simplify the approval process for crucial highway improvements across the country.

Under Policy Circular No. 12.25/2022 (April 12, 2022), Regional Officers (ROs) can approve estimates for the rectification of MoRTH-notified blackspots through long-term measures up to Rs. 50 crore per blackspot. For projects exceeding Rs. 50 crore, approval from the concerned Member, with the concurrence of Member (Finance) is required.

Policy Circular No. 12.31/2023 (February 23, 2023) allows ROs to combine bids for multiple blackspots instead of issuing separate bids, where feasible.

NHAI has identified the need for infrastructure enhancements across various projects, including:

1. Construction of underpasses, flyovers, service roads, and bridge improvements to enhance traffic flow and safety.
2. Rectification of non-MoRTH notified blackspots, especially during the Defects Liability Period (DLP) or Operation & Maintenance (O&M) stage under EPC, HAM, TOT, or BOT(T) contracts.
3. Pavement strengthening and overlay works based on road condition assessments using Network Survey Vehicles (NSV) and Falling Weight Deflectometer (FWD) tests.
4. Additional works identified during Toll-Operate-Transfer (TOT) and Infrastructure Investment Trust (InvIT) bidding, as approved by the Project Appraisal and Technical Steering Committee (PATSC) or the Executive Committee (EC).

To ensure a structured and efficient approval process, the following framework has been established as per the EC Meeting (Agenda Item No. 650.04) held on January 24, 2025:

1. Projects with a cost of up to Rs. 500 Crore will be appraised by the Infrastructure Appraisal Committee (IAC) and approved by Chairman of the NHAI.
2. For projects with costs exceeding Rs. 500 Crore, the PATSC will conduct the appraisal, with final approval granted by the Executive Committee (EC) of NHAI.

Financial Management & Fund Utilisation:

1. Costs for capacity augmentation, road safety, and strengthening/overlay works will be categorised under O&M expenses for developed highway sections.
2. The Finance Division will maintain detailed records of all approved cases and track O&M fund utilisation.
3. NHAI’s Finance Division will coordinate with MoRTH to secure the necessary funding for these projects.

By standardising the approval process, delegating powers efficiently, and ensuring robust financial tracking, NHAI aims to accelerate critical infrastructure improvements. These policy reforms reinforce NHAI’s commitment to safer, more efficient, and well-maintained national highways, aligning with global best practices in road infrastructure management.