The National Highways Authority of India (NHAI) has introduced a revised Standard Operating Procedure (SOP) through its policy circular no. 10.2.43/2025, dated February 20, 2025, aiming to improve quality control on factory-manufactured materials such as steel and cement used in highway projects. The move comes in response to growing concerns over construction quality of key highways like the Delhi-Jaipur Expressway and Amritsar-Jamnagar Economic Corridor.
Recent investigations revealed that substandard steel was used in certain projects. In 2024, NHAI issued show cause notices to 11 steel manufacturers (including MSP Steel and Power, Gallant TMT, and Kamachi Industries) after third-party testing found that their reinforcement steel bars failed to meet IS:1786 chemical composition standards. The presence of high phosphorus and sulphur levels in steel compromises its strength and durability, raising safety concerns for highways, bridges, and flyovers.
Maintaining high-quality materials is vital for the structural integrity and safety of NHAI projects. Since these materials are produced in factories, strict quality control at the source is essential. Proper supplier selection and rigorous testing of material “Lots”, as per IRC Guidelines and the Quality Assurance Plan (QAP), is necessary to ensure consistent quality at project sites.
Key changes in the SOP are as follows:
Stricter Multi-Level Quality Control
- The previous ‘One-Time Source Approval’ system for material suppliers, which was last revised under policy circular bearing reference number OM No. NHAI/TIC/PQ/2012-13/394 dated February 12, 2023, has been replaced with a multi-level checks and control mechanism.
- A list of preferred vendors will be developed, prioritising those that meet IRC: SP-112 standards.
- A standardised factory inspection checklist is introduced, favoring integrated steel plants with a Ladle Refining Furnace (LRF) for better steel quality.
- A digital data lake module will track material supply details on a monthly basis for improved transparency.
Establishment of Independent Regional Quality Offices (RQOs):
- Five Independent Regional Quality Offices (RQOs) will be set up under the Standards, Research, Development & Quality (SRD&Q) Division to monitor project quality.
- Each RQO will be led by a GM-level Regional Quality Officer and supported by two Manager/Dy. Manager-level officers.
- These RQOs will be responsible for conducting quality inspections during construction, finalising regional laboratories for third-party testing, collecting and testing factory-manufactured materials, witnessing specialised product tests, etc.
- The official or agency nominated by the SRD&Q Division will conduct surprise sample testing, and any failure will result in appropriate action.
The revised guidelines emphasise procurement from India’s primary steel manufacturers, including SAIL, JSW, Tata Steel, and Jindal Steel & Power (JSP) for highway projects. Secondary steel manufacturers (especially those using induction furnace (IF) technology) must now meet stricter eligibility criteria, including the use of LRF to enhance steel quality. This move may impact secondary steel suppliers, shifting their focus to domestic markets and widening the price gap between primary and secondary steel.
To further enhance transparency, NHAI has also introduced a performance rating system for highway contractors, which will be updated every six months and made publicly available on its website and social media channels.
With stricter quality norms, primary steel manufacturers will benefit from increased demand, while secondary producers will need to upgrade their facilities to stay competitive. Thus, by ensuring better material quality, NHAI aims to enhance infrastructure longevity and safety, reinforcing India’s commitment to world-class highways.