MoRTH Proposes Rating Mechanism for DPR Consultancy Firms

In a significant move towards strengthening the foundation of road infrastructure planning, the Ministry of Road Transport and Highways (MoRTH) has proposed the introduction of a structured performance rating system for consultancy firms engaged in the preparation of Detailed Project Reports (DPRs) for highway and road infrastructure projects. This initiative comes in the wake of growing concerns regarding the deteriorating quality of DPRs, which form the backbone of any road development project.

The DPR functions as the foundational document for road construction projects, encompassing critical design, technical, logistical, and financial parameters. However, MoRTH has noted that deficiencies in DPR quality have frequently resulted in cost overruns, construction delays, and technical challenges, thereby affecting the timely and efficient development of India’s national highway network.

To address this concern, MoRTH issued an Office Memorandum dated July 7, 2025, seeking public comments on a “Concept Note on Modifications in DPR” for the proposed rating system. According to the memorandum, the objective is to assess DPR firms in objective terms based on their actual performance, thereby distinguishing between competent and underperforming entities. This, in turn, will serve as a basis for policy-level incentives and disincentives in future engagements.

As outlined in the Concept Note, the rating mechanism will initially apply to:

1. Projects where at least 180 days have elapsed after the Appointed Date;
2. Projects for which provisional or final completion certificates have been issued; and
3. Four to six-lane highway projects exceeding 10 km, and two-lane projects exceeding 25 km.

The rating exercise is proposed to be conducted biannually:

1. The first iteration will cover eligible projects up to 15^th February, with ratings preferably completed by 30^th March.
2. The second iteration will include projects up to 15^th August, with ratings aimed for completion by 30^th September.

The primary objective of this mechanism is to identify high- and low-performing consultancy firms and to facilitate policy interventions that incentivise or disincentivise firms, accordingly, based on empirical performance outcomes.

In parallel, MoRTH has also invited public comments by Office Memorandum dated July 09, 2025, on the “Proposed modified Document for Request for Proposal (RFP)” used to appoint consultants for DPR preparation for national highways and centrally sponsored road projects.

Noteworthy, proposed changes include:

1. Bidders may now quote financial bids for projects estimated at or below Rs. 100 crores.
2. For projects between Rs. 100 crores and Rs. 500 crores, financial bidding will not be applicable. Instead, a fixed cost shall be determined by the tender-inviting authority, thereby standardizing the project cost assessments for mis-sized projects.

Together, these initiatives mark a significant shift in highway project governance, aiming to embed performance-based evaluation and quality-driven procurement into MoRTH’s planning framework. As India’s road infrastructure expands, these reforms reflect the Government’s commitment to accountability, efficiency, and informed decision-making, with stakeholder input playing a crucial role in shaping a more robust and transparent system.