NHAI Modifies Highway Projects Takeover Protocols

In the evolving landscape of national highway development and management, the seamless transition of project highways from concessionaires or contractors to the National Highways Authority of India (NHAI) is pivotal for operational continuity, asset integrity, and user safety. To systematize this process, NHAI issued a Standard Operating Procedure (SOP) in 2022 for taking over highways completed under various contract modes, including BOT (Build-Operate-Transfer), HAM (Hybrid Annuity Model), OMT (Operate-Maintain-Transfer), TOT (Toll-Operate-Transfer), and EPC (Engineering, Procurement, and Construction) post Defect Liability Period (DLP) or concession period.

NHAI has now issued updated guidelines for the takeover of project highways completed under the above-mentioned contract modes. These revisions, released via Policy Circular No. 18.103/2025 (hereinafter referred to as “2025 Circular”), supersede portions of the earlier circular, namely Paragraphs 2.1 and 3 of the Policy Circular bearing Reference No. 18.83/2022 dated October 1, 2022.  

The modifications stem from the recommendations of the Ministry of Road Transport and Highways (MoRTH) as communicated in their letter dated February 3, 2025, which underlined key concerns in the transition phase at the end of DLP or concession periods. It was observed that concessionaires/contractors often failed to rectify defects and meet maintenance standards toward the end of their contract periods, especially when Short-Term Maintenance Contracts (STMC) or Performance-Based Maintenance Contracts (PBMC) were to follow immediately. This created gaps in upkeep and compliance.

To bridge this gap, MoRTH emphasized:

1. Advance inspections six months prior to expiry by a designated committee.
2. Issuance of defect notices with mandatory compliance prior to handover.
3. Linking issuance of Letter of Acceptance (LOA) for PBMC/STMC with formal Taking Over Certificates as per respective contractual schedules (Schedule R for EPC, Schedule Q for HAM, etc.).

These directives laid the foundation for NHAI’s revisions to its SOP, ensuring synchrony between maintenance planning and takeover procedures.

Key changes:

1. Extended Inspection Timeline: As per the revised SOP, inspection reports by designated teams must now be submitted at least six months prior to the anticipated takeover date, an extension from the previous three-month requirement. The inspection team composition remains unchanged, comprising an official from HQ, RO, and the Independent Engineer/Authority Engineer (IE/AE) to inspect assets and documentation.
2. Advance Procurement Planning: To ensure seamless operations post-handover, the Independent Engineer/Authority Engineer must now submit estimates and bidding documents at least six months before the takeover. This allows sufficient time for the concerned Project Director, Regional Office, or Technical Division at headquarters to complete procurement procedures and finalize operations and maintenance (O&M), tolling, and capacity augmentation contracts.

Additional Requirements:

1. In addition to the Estimate/Bidding Document, the Inspection Report of Committee with Defect Notices issued if any, must be provided along with the PBMC/STMC Proposals in Stretches where the DLP/concession period is scheduled to expire.
2. LOA for such works shall only be issued after issuing of the Taking Over Certificate as per the relevant contract schedule: Schedule-R in EPC Projects, Schedule-Q in HAM Projects and Schedule-U in BOT Projects.
3. Inspection reports must distinctly categorize the defects falling under the contractor’s or concessionaire’s scope and those outside it, which would then be addressed through separate maintenance proposals.

The SOP applies to all projects where the takeover is still pending at the time of issuance, and adherence to these provisions is mandatory.