Push Towards 100% Land Acquisition for Highway Projects

In a move aimed at addressing delays in highway development, the Ministry of Road Transport and Highways is exploring a shift towards requiring 100% land acquisition prior to granting approvals for new national highway projects, signalling a more stringent approach to project readiness and execution.

The proposal builds on the existing framework, under which approximately 90% land acquisition is required before the declaration of the “appointed date”, the formal commencement point for project execution.

The recommendation arises from ongoing challenges in project implementation, where delays in land acquisition, along with forest and environmental clearances, continue to be key bottlenecks. A significant number of stalled highway projects have been attributed to land-related issues, underscoring the need for a more robust pre-construction framework.

Under the proposed approach, projects would proceed to the execution stage only once land acquisition is fully completed, thereby reducing the risk of mid-project disruptions, cost overruns, and contractor claims. This is expected to improve project timelines, enhance certainty for developers and lenders, and strengthen overall project bankability.

The shift could have implications for the structuring of highway contracts, particularly in engineering, procurement and construction (EPC) and hybrid annuity model (HAM) projects, where delays in site handover often trigger disputes and impact financial viability. Ensuring full land availability upfront is likely to streamline risk allocation and reduce litigation exposure.

In parallel, attention has also been drawn to the quality of Detailed Project Reports (DPRs), which serve as the technical and financial blueprint for highway projects. Strengthening the DPR ecosystem, including improved accountability and specialised expertise, may further support better execution outcomes and asset quality.