New NHAI Policy: Zero-Tolerance Towards Faulty Contractors, Penalty Up To Rs. 10 Crore And Debarment From NHAI Projects


NHAI is driving quality assurance in its projects strongly, in this view it has implemented a new policy wherein it can fine contractors up to Rs. 10 crore along with debarment up to three years if contractors or consultants are responsible for lapses and faulty construction of NHAI projects.

“In order to deal with the lapses in highway development, NHAI has issued a strict policy to decide penal action against defaulting firms/ personnel if there are any lapses in construction standards of bridges/ structures/approaches to structure etc by the Concessionaires/ Contractors / Consultants,” NHAI said in a statement.

New Policy is aimed at improving quality of NHAI projects, safety at project sites and accountability of contractors, and zero tolerance on defaulters.

Graded penalty will be levied upon defaulters in cases of lapses, minor incidents and major incidents including serious fatalities, NHAI said.

In case of major lapses where no casualties are reported, rectification by the respective defaulter will be carried out at their own cost, and /or debarment of contractor up to 1 year with a penalty up to Rs 5 crore, along with debarment of concerned personnel for up to 2 years from NHAI projects, under provisions of NHAI policy.

“In case of a major lapse leading to loss of human life, a heavy fine up to Rs 10 crore and debarment of the firm/personnel up to 3 years along with rectification by the defaulting Contractors/Concessionaires on their own cost may be imposed,” NHAI said.

In the graded penalty, consultants will also be help liable for any failures, with a penalty up to Rs. 40 lakh and debarment from NHAI projects up to two years, and key consultant personal will be debarred for up to three years.

“For each repeated lapse by the defaulting contractors/concessionaires/ consultants, the penalty for the subsequent offence shall be enhanced by an additional 50 per cent as compared to the penalty imposed in the previous instance. Suitable action on NHAI officials shall also be taken, depending on the extent of dereliction of the duties by the concerned official,” it said.

NHAI policy also provides Standard Operating Procedures (SOPs), wherein an expert committee will be setup to investigate into post-accident affairs to find liable defaulters.

During investigation from expert committee, the suspected contractors maybe kept on hold from participating in NHAI projects.