Road builders could face liability for a decade
ROADS & HIGHWAYS

Road builders could face liability for a decade

The Ministry of Road Transport and Highways is contemplating the extension of the defect-liability period in engineering-procurement-construction (EPC) contracts to 10 years. This proposed measure aims to reduce the government's expenditure on road maintenance.

The intention behind this move is to encourage contractors to enhance the quality of construction, ultimately leading to a decrease in road accidents. The ministry is currently in discussions with stakeholders and will soon finalise the proposals.

An official, wishing to remain anonymous, revealed, "Expert consultations are underway to extend the defect-liability period under EPC contracts to 10 years, as the ministry is committed to enhancing the quality of construction."

In the EPC mode of road construction, the central government assumes responsibility for maintaining national highways once the defect-liability period concludes. During the defect-liability period, it is the contractor's duty to handle maintenance.

For the fiscal year 2024-25, the ministry has allocated Rs 26 billion for road maintenance. This amount remains consistent with the budgetary and revised estimates for 2023-24, with a slight increase compared to the Rs 25.73 billion expended in 2022-23.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

The Ministry of Road Transport and Highways is contemplating the extension of the defect-liability period in engineering-procurement-construction (EPC) contracts to 10 years. This proposed measure aims to reduce the government's expenditure on road maintenance. The intention behind this move is to encourage contractors to enhance the quality of construction, ultimately leading to a decrease in road accidents. The ministry is currently in discussions with stakeholders and will soon finalise the proposals. An official, wishing to remain anonymous, revealed, Expert consultations are underway to extend the defect-liability period under EPC contracts to 10 years, as the ministry is committed to enhancing the quality of construction. In the EPC mode of road construction, the central government assumes responsibility for maintaining national highways once the defect-liability period concludes. During the defect-liability period, it is the contractor's duty to handle maintenance. For the fiscal year 2024-25, the ministry has allocated Rs 26 billion for road maintenance. This amount remains consistent with the budgetary and revised estimates for 2023-24, with a slight increase compared to the Rs 25.73 billion expended in 2022-23.

Next Story
Infrastructure Energy

Orb Energy Achieves Rs 3 Bn Milestone in Solar Financing Success

Orb Energy, a vertically integrated solar energy solutions provider, has achieved a significant milestone by surpassing Rs 3 billion in financing disbursements through its in-house finance facility that requires no collateral or down payment. This accomplishment underscores its dedication to supporting small and medium enterprises (SMEs) and micro, small, and medium enterprises (MSMEs) in India in transitioning to cost-effective solar energy solutions. The company has installed approximately 350 MW of solar photovoltaic systems nationwide, with a strong foothold in southern and western India...

Next Story
Infrastructure Energy

90% Defaulters Yet to Settle Rs 3.17 Bn Power Dues in Noida

Out of a total of 1.31 lakh defaulters in Noida, only 13,500 consumers availed of the one-time settlement (OTS) scheme during its first phase. The Uttar Pradesh Power Corporation (UPPCL) launched the scheme in three phases, from December 15, 2024, to January 31, 2025. These consumers cleared dues amounting to Rs 300.40 million out of a total Rs 3.47 billion owed. Officials emphasized that stricter enforcement of the scheme would be implemented in the coming phases. During a recent weekend meeting with the technical team of the power department, the Noida zone's chief engineer instructed that..

Next Story
Infrastructure Energy

NER Invites Bids for 10 MW Rooftop Solar Projects in Uttar Pradesh

The Varanasi division (electrical) of Northeastern Railway has recently issued four tenders for a total of 10.4 MW on-grid rooftop solar systems to be installed at various buildings in Gorakhpur, Uttar Pradesh. The tenders include different project capacities, with submission deadlines set between January 31 and February 3, 2025. Bidders are required to submit earnest money deposits (EMDs) ranging from Rs 0.89 million to Rs 1.2 million depending on the tender, with the expected project costs varying between Rs 148 million and Rs 174.08 million. The selected contractors will be tasked with sup..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000