Centre Lays Down Pre-Tender Milestones For National Highway Projects To Prevent Delays And Cost Overruns

In a bid to eliminate execution delays and contractual disputes in National Highway projects, the Ministry of Road Transport and Highways has issued a directive mandating new pre-bid milestones for land acquisition, environment, forest, and wildlife clearances.

The new norms will apply to all projects for which tenders are issued from 1 June 2025, Times of India reported.

According to the ministry’s circular, the "milestones are to be strictly adhered to while awarding NH projects in case of any project for which tenders are to be issued w.e.f. 1st June, 2025".

"In order to avoid delays in the construction of National Highway projects after award and prevent contractual disputes as well as time and cost overruns, there is an urgent requirement to synchronize the project approval, award and appointed date declaration activities with the milestones for land acquisition procedures and environment, forest and wildlife clearances," the circular dated 6 May said.

The directive outlines a structured approach to ensure that all statutory and logistical prerequisites—such as land acquisition, utility shifting estimates, and environmental and wildlife clearances—are completed before key project milestones like bid receipt, invitation of bids, or issuance of Letter of Award (LoA).

For land acquisition, the new guidelines require agencies to issue the Section 3D declaration for over 90 per cent of the required land before bids are invited.

Additionally, compensation under Section 3G must be awarded for more than 90 per cent of the land prior to issuing the Letter of Award.

Authorities must also ensure that over 90 per cent of the land is in physical possession before construction work begins.

The ministry emphasised that valuation and payment for structures should be treated as integral to the land acquisition compensation process and must be completed within the stipulated timelines.

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