NHLML Entrusts O&M of Port Road SPVs to NHAI on Deposit Work Basis

The National Highways Authority of India (NHAI), vide Policy Circular bearing reference no. 18.130/2026 dated July 20, 2026 (the “Circular”), has issued directions for execution of Operation and Maintenance (O&M) works relating to specified Port Road Special Purpose Vehicles (SPVs) through NHAI on a deposit works basis. The Circular gives effect to the decision of the Executive Committee taken under Agenda Item No. 719.24 and follows Office Order No. Fin/2026-27/04 dated July 2, 2026, issued by National Highways Logistics Management Limited (NHLML).

The Circular seeks to streamline the execution, monitoring and contract management of O&M works by leveraging NHAI’s established institutional framework and technical expertise in the O&M of National Highways. Accordingly, O&M works of the following Port Road SPVs shall henceforth be executed by NHAI on a Deposit Works basis:

1. Chennai Ennore Port Road Company Limited (CEPRCL);
2. Mormugao Port Road Company Limited (MPRCL);
3. Mumbai JNPT Port Road Company Limited (MJPRCL);
4. Tuticorin Port Road Company Limited (TPRCL);
5. Calcutta Haldia Port Road Company Limited (CHPRCL);
6. Cochin Port Road Company Limited (CPRCL);
7. Visakhapatnam Port Road Company Limited (VPRCL); and
8. Paradip Port Road Company Limited (PPRCL).

The execution of these deposit works shall be governed by NHAI Policy Circular no. 3.2.17/2026 dated June 22, 2026, which prescribes a comprehensive Standard Operating Procedure (SOP) for execution of deposit works on behalf of other entities. The SOP provides a uniform framework governing technical sanction, financial concurrence, administrative approval, delegation of powers, fund deposits, centage charges, tendering, execution, contract management, accounting, monitoring, cost variations, dispute resolution, completion and handing over of works.

Under the SOP, deposit works are undertaken by NHAI on behalf of Central or State Government departments and other entities, with the entire project cost being funded in advance by the sponsoring entity. The framework establishes a structured approval mechanism requiring technical scrutiny, financial concurrence and administrative approval before commencement of execution, while prescribing delegated approval powers based on project cost. It also permits regularisation of cost variations up to 20% of the sanctioned estimate, with variations beyond this threshold requiring revised approvals from the competent authority in consultation with the sponsoring entity.

The SOP further provides that NHAI shall levy centage charges ranging from 3% to 5% of the civil cost towards supervision and administrative expenses, subject to relaxation by the Chairman. Deposit Works up to Rs. 100 crores shall be tendered at the Regional Office level, while works exceeding Rs. 100 crores shall be tendered at Headquarters, with the concerned Project Implementation Unit (PIU) remaining responsible for execution and project monitoring. The framework also prescribes dedicated accounting arrangements, project-wise bank accounts, procedures for completion and handover, dispute resolution mechanisms, and norms governing execution through Change of Scope, and the treatment of tender discounts and accrued savings, which, along with any unutilised balance, are required to be refunded to the sponsoring entity.