Government Cracks Down on Lapses in Highway Construction

In a bid to enhance the quality and durability of national highway infrastructure, the Ministry of Road Transport and Highways (MoRTH) has been directed to introduce clear norms and standards for subcontractors engaged by main highway contractors. The move aims to ensure greater accountability and consistency in project execution.

MoRTH has been called upon to formulate clear norms and standards for subcontractors engaged by primary contractors in highway construction projects. This marks a significant policy shift, recognizing that the quality of subcontracted work is often the weakest link in infrastructure delivery.

MoRTH has also been asked to overhaul the eligibility and selection criteria for supervision engineers. These changes come in response to recurring incidents of damage to newly built highways, often attributed to poor workmanship, extremely low project bids, and inadequate oversight by consultancy firms. 

In addition, a stringent rating system for supervision engineers is currently being finalized. This system, expected to be launched within a few weeks, will bar poorly rated engineers from securing future assignments.

This initiative comes on the heels of contract amendments designed to discourage abnormally low bids, which have often led to cost-cutting at the expense of quality. The government appears determined to ensure that cost efficiency does not come at the price of structural integrity.

The National Highways Authority of India (NHAI) has taken firm action against underperforming entities. Over the past two years, it has penalized more than a dozen construction firms and 17 consultancy agencies, levying penalties totaling around ₹24 crore.

In a major administrative clean-up, NHAI has also suspended 26 officers, including several general managers and deputy general managers for negligence and lapses in supervision. A further 57 officers on deputation have been prematurely repatriated to their parent departments.

Furthermore, NHAI has warned contractors that they may not only face financial penalties but could also be held liable for the cost of reconstructing faulty assets, a shift that places the burden of quality squarely on the builder’s shoulders.

NHAI clarified that penalties against firms followed repeated show-cause notices and performance reviews, citing non-compliance with standards and delays. With over 80,000 km of highways under its purview, the action signals a stricter push for accountability in project execution.

Against this backdrop, there is a need for clear norms to regulate standards for subcontractors in highway projects. There is a concern over the systemic weakness in regulating subcontractors who often execute major portions of work under Engineering, Procurement, and Construction (EPC) and Hybrid Annuity Model (HAM) contracts but lack direct oversight.

To bridge this regulatory gap, the MoRTH has been tasked with creating a compliance framework to enhance transparency, quality, and accountability and to prevent losses from poor construction practices.

These measures reflect the government’s commitment to strengthening trust, quality, and accountability in highway development. With tighter subcontractor regulations, performance-based oversight, and firm action against non-compliance, India is building a more resilient infrastructure framework, ensuring that investments in connectivity yield lasting value.