The government has announced a series of measures to mitigate the impact of the global situation and the resulting increase in fuel, construction material, and related logistics costs on National Highway Projects. These measures are aimed at providing relief to contractors and concessionaires while ensuring the uninterrupted construction and maintenance of National Highway projects across the country. The measures will be applicable for a period of three months, from April 1st to June 30th, 2026, or until further review based on the global economic situation.
The Ministry of Road Transport and Highways has stated that as part of the measures, provisions for EPC (Engineering, Procurement, and Construction) and HAM (Highway Asset Management) projects have been relaxed to enable monthly payments to contractors and concessionaires for work executed in compliance with prescribed quality standards and specifications. Furthermore, the mechanism for price adjustment under EPC contracts has been modified to reflect prevailing market conditions. The Ministry stated that this initiative reflects the Government's proactive approach to addressing sectoral challenges and its commitment to maintaining momentum in infrastructure development by ensuring financial stability and operational continuity in National Highway projects.