NHAI to penalise firms for lapses in quality
National Highways Authority of India (NHAI) is taking steps to ensure adherence to the standards during construction and maintenance of the projects to maintain high-quality standards in highway development. NHAI has issued, penal action with provision for a heavy fine of up to Rs 10 crore and debarment for up to three years of defaulting firm or personnel.

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 or structures or approaches to structure etc. by the concessionaires or contractors or consultants. The new policy allows NHAI to impose graded penalties that include heavy fines, debarment and ban on bidding for any future NHAI projects for up to three years.

In cases of minor lapses graded penal action will be taken against the defaulters while for major incidents and major failures resulting in loss of human lives heavy fine up to Rs 10 crore and debarment of the firm or personnel, up to three years along with rectification by the defaulting contractors or concessionaires on their own cost may be imposed.

For major lapses where no casualties are reported, rectification by the defaulting contractors or concessionaires on their own cost and /or debarment of firm up to one year with a penalty up to Rs 5 crore along with debarment of concerned personnel for up to two years from NHAI projects has been provisioned.

For Minor lapses wherein no casualties are reported, the defaulting contractors or concessionaires will have to bear the expenses for carrying out the rectification work along with a penalty of Rs 30 Lakh and a written warning to the firm and involved personnel will also be issued. Under the graded penalty, the consultancy firm involved in the project will also be held liable with a fine of up to Rs 40 lakh and debarment from NHAI projects for a period of up to two years. Key personnel of the consultancy firm will also be debarred from NHAI projects for a period of up to three years.

For each repeated lapse by the defaulting consultants, the penalty for the subsequent offence shall be enhanced by an additional 50% 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.

As per the Standard Operating Procedures (SOP), an expert committee will be constituted in compliance with already established post-accident mechanism, to investigate the matter.

Written from an official news release.