New Highway Norms: Driving Better Roads, Faster!

In a significant policy update aimed at improving execution standards and curbing delays, the Ministry of Road Transport and Highways (MoRTH) has revised the eligibility criteria for contractors bidding on highway projects under the Hybrid Annuity Model (HAM) and Engineering, Procurement, and Construction (EPC) mode.

The move follows concerning data indicating that 44% (419 out of 952) of ongoing road projects were delayed as of March 2024. Union Minister Nitin Gadkari stated that the revised norms are designed to enhance construction quality, enforce greater accountability, and ensure timely project delivery.

Key changes include:

HAM Projects:

Minimum financial capacity requirement increased to 20% of the estimated project cost (up from 15%), Net worth requirement for consortium members raised to 10% (from 7.5%)

EPC Projects:

Minimum net worth requirement doubled to 10% (from 5%), Average annual turnover requirement raised to 20% (from 15%)

The new norms also extend to specialized infrastructure such as tunnels and complex structures, aiming to filter for more experienced and financially robust contractors.

Looking ahead, the government plans to award 124 highway projects worth ₹3.5 lakh crore in FY 2025–26, with over 80 of these projects to be executed under the HAM model.

News by Rahul Yelligetti.