NHAI Revises Qualification Criteria for EPC Projects

The National Highways Authority of India (NHAI), has issued Policy Circular bearing reference no. 11.70/2025 dated August 8, 2025, introducing comprehensive modifications to the qualification criteria under the Standard Request for Proposal (RFP) for Engineering, Procurement and Construction (EPC) projects. These changes, flowing from earlier Ministry of Road Transport and Highways (MoRTH) circulars dated April 29, 2025, and July 08, 2025, while also addressing certain corrections in the light of subsequent policy issued on July 10, 2025, for Hybrid Annuity Model (HAM) projects are intended to strengthen the eligibility framework, in light of concerns that past relaxations had adversely affected the quality of highway infrastructure.

EPC contracts are central to India’s highway programme, with private contractors delivering works under strict contractual terms. To maintain string qualification standards and attract competent bidders, MoRTH and NHAI regularly revise the eligibility framework.

The latest changes bring EPC norms in line with HAM and BOT models, ensuring consistency in evaluation while also addressing industry concerns around subcontracting, joint ventures, and experience certification.

Structured overview of the key modifications:

1. Clause 2.2.2.2 (i)-Single Work Criteria (Similar Work Executed):
   • Previously, bidders could qualify with experience of either two similar completed works of at least 25% each of the estimated project cost or one similar work of 35% each, and experience from subcontracted or JV works was admissible subject to limits and authority approval.
   • The circular now clarifies that one similar completed work must costing not less than 35% of the estimated project cost. “Similar completed work” must now comprise all major components of the project bid. Further, bidders must submit a specific Experience Certificate in the format prescribed at Annexure IX of Appendix-IA of the Model RFP, in addition to client or auditor certificates. For NHAI projects, certificates will be issued by the concerned GM (Technical) at Headquarters upon recommendation of the project director.
2. Clause 2.2.2.2 (ii) & (iii)-Bridge, ROB, Flyover & Tunnel Projects: For bridges and flyovers with spans exceeding 60m, earlier provisions required experience of constructing 80% of the span or 100m and 40% of the total length or 2 km, whichever was less. Tunnel projects over 200m required experience of 80% of the tunnel cross-sectional area or a two-lane highway tunnel and 40% of the tunnel length or 2 km. The revised circular now requires that, for bridges/flyovers, bidders demonstrate experience of 80% of the total length of the longest structure proposed, in addition to span criteria. For tunnels, the bidder must have experience covering at least 80% of the inner cross-sectional area of the widest tunnel proposed, together with 40% of the tunnel length, subject to a minimum of 2 km.
3. Clause 2.2.2.4- Joint Venture (JV) Qualification: Earlier, JV partners could qualify by showing completion of one similar work equivalent to 20% of the estimated project cost from eligible projects. The circular now increases this requirement so that any JV member must individually have completed either one similar work of at least 35% of the estimated project cost or two similar works of at least 25% each of the estimated project cost.
4. Clause 2.2.2.2 (iii)-Standalone Specialized Projects: Previously, the lead bidder or the JV member needed one similar completed work in major bridge, ROB, or flyover projects within the last seven financial years or until the bid due date, covering 80% of the longest span or 100m and 40% of the total length or 2 km. The revised criteria align with EPC project cost benchmarks, requiring that the sole bidder or lead JV member must have completed one similar project of 35% of the estimated project cost or two similar projects of 25% each within the last seven years.
5. Clause 2.2.2.2. (iii)-Tunnel Projects: Bidders for tunnel projects earlier needed experience of constructing two or one similar completed works in a tunnel project of not less than 25% or 35% of the cost of major bridges or ROB or flyovers. This has been changed under the circular to having experience of one similar tunnel project of up to 35% of the estimated project cost, or two similar completed tunnel projects of up to 25% each ensuring the same cost-based criteria but aligning evaluation with the specific project scope and size.
6. Clause 2.2.2.5 (iv)-Technical Evaluation of JV Projects: Previously, JV eligibility could include the applicant’s share and, if certified by the statutory auditor, work executed on behalf of other partners. The circular now restricts evaluation strictly to the applicant’s actual share in the JV, without credit for work executed on behalf of partners.
7. Clause 2.2.2.6-Technical Capacity (Value of Works): Earlier, for projects above ₹100 crore, eligible project value had to exceed 10% of the estimated cost, based on actual non-escalated costs. The circular now specifies that projects up to ₹100 crore should meet 5% of the estimated project cost, and projects above ₹100 crore should meet 10% threshold, with receipts of less than 5% and 10% considered respectively. Only non-escalated actual costs or receipts are counted for technical evaluation.
8. Net Worth Requirement (Footnote Clarification): Earlier, net worth for projects above ₹100 crore was required at 10% of the estimated project cost. The circular now standardizes the requirement to 5% for projects up to ₹100 crore and 10% for projects above ₹100 crore.
9. Clause 2.20.2- Bid & Performance Security: Previously, any bid submitted without a bid security was deemed non-responsive. The circular now extends this provision to cover cases where Bid Security or Performance Security is sourced from a third party.
10. Clause 4.3(d) – Fraud & Undesirable Practices: Fraud and undesriable practices covers canvassing, lobbying, influencing the bidding process, and conflicts of interest. The circular expands the scope to include unauthorized subcontracting or subcontracting beyond contractual limits as undesirable practices.

Through these refinements, NHAI has raised the threshold for technical, financial, and documentary compliance in EPC bidding. The modifications close interpretative gaps, reinforce accountability in JVs, and ensure only contractors with comparable technical experience and financial soundness qualify. For contractors, this necessitates more rigorous documentation and bid preparation. For the Authority, it signals a push towards greater quality control and transparency in project execution.