To maintain high quality standards in highway development, National Highways Authority of India (NHAI) is taking all steps to ensure adherence to the standards during construction and maintenance of the 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. 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.

Graded penal action will be taken against the defaulters in cases of minor lapses, major incidents and major failures resulting in loss of human lives. In case of a major lapse leading to loss of human life, 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. For major lapses where no casualties are reported, rectification by the defaulting Contractors/Concessionaires on their own cost and /or debarment of firm up to 1 year with penalty up to Rs 5 crore along with debarment of concerned personnel for up to 2 years from NHAI projects has been provisioned. However, for Minor lapses wherein no casualties are reported, the defaulting Contractors/Concessionaires will have to bear the expenses for carrying out the rectification work along 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 contractors/concessionaires/ consultants, the penalty for the subsequent offence shall be enhanced by an additional 50 per cent as compared to 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. On the outcome of the investigation, suitable penalty shall be imposed. During the term of investigation, the concerned personnel of the Contractor/Concessionaire and Consulting Firm may be kept under suspension from working on the project/ any other projects of the Authority. 

NHAI is committed to follow the highest standards in highway construction and any lapses in these will be dealt with zero tolerance. Implementation of the Standard Operating Procedures will ensure that proper action is taken against the defaulters and they will be debarred from NHAI projects with severe penalties.