Streamlining WSA Development: NHAI’s New Methodology for De-scoping and Cost Assessment

The National Highways Authority of India (NHAI) has issued updated guidelines vide Policy Circular bearing Reference No. 18.102/2025 dated April 4, 2025, concerning the development of Wayside Amenities (WSAs) along national highways and expressways. These guidelines primarily focus on the scaling back of the scope of WSA construction from the responsibilities of road contractors and concessionaires across EPC, HAM, and BOT modes, as well as ensuring strict adherence to approved layout plans. This new policy supersedes earlier instructions detailed in Policy Circular bearing reference No. 18.95/2024 dated June 11, 2024, and is effective immediately.

NHAI had previously integrated WSA development into road contracts under EPC, BOT, and HAM modes. However, uneven project outcomes triggered a shift in strategy. SOP for de-scoping introduced through Policy Circular bearing Reference No. 18.79 dated March 11, 2022, and further clarity provided through Policy Circular bearing Reference No. 18.89 dated July 5, 2023, laid the groundwork for separating WSA construction from main highway works. Yet, persistent issues such as lack of drawings, undefined plinth areas, and the variability of standards in Schedule D led to inconsistent interpretations during de-scoping and cost estimation.

Key highlights of the new policy

1. Methodology for Descoping WSA Construction
   • EPC Contracts: Descoping will be done according to Schedule H, following clause 8.2(iii)(a) of the Contract Agreement. Assessment will consider the percentage of work executed versus the total cost indicated.
   • HAM/BOT (Toll)/BOT (Annuity) Concessions: Descoping will follow clause 16.6 of the Concession Agreement (dealing with reduction in scope and cost adjustments), with cost estimation following the method specified in the circular.
2. Cost Assessment Standards: In the absence of specific plinth areas of different WSAs not mentioned in the CA:
   • 5% of land parcel shall be considered as built-up area, and
   • 15% of the land parcel shall be used as a developed area.
   • Cost estimation will use standard Plinth Area (PA) rates as per CPWD/MES, considering the percentage of work executed with respect to the total WSA cost indicated in the CA.
3. Adjustments Based on Inflation: The derived cost will be adjusted according to the Wholesale Price Index (WPI) between April 1, 2023, and the month of work award. GST will be levied extra if applicable.
4. Treatment of Already Initiated WSA Works: For works where construction has commenced: –
   • The cost of completed work will be determined based on SOR rates as of the Bid Due Date.
   • The cost of completed work will be deducted from the overall assessed cost to determine the remaining balance.
5. Special Cases
   • Projects without indication of the size of the land parcel data or % plinth costs in Schedule H shall be handled case-by-case.
   • If the land is not fully available, descoping may be approved on a case-to-case basis.
   • Standard layouts and parking dimensions may be estimated using CPWD/MES/PWD/IRC norms if not specified in the CA.

With this updated policy, NHAI has introduced a structured, consistent approach for de-scoping WSAs while ensuring accurate cost estimation. It eases execution burdens on road contractors and promotes specialized WSA development enhancing efficiency, transparency, and accountability across highway infrastructure projects.