NHAI bars 8 developers from bids

NHAI bars 8 developers from bids
NEW DELHI: The National Highways Authority of India (NHAI) on Tuesday barred eight major highway developers from bidding for any project for the next three years, accusing them of repeated instances of non-performance and failure to complete pending works. More contractors are under the lens.

“The decision on non-performing contractors/ promoters has been reached after rigorous scrutiny and examination. The companies were issued show-cause notices and adequate opportunities were given to them to respond. Many of them did not submit any response,” a senior NHAI official said, adding that more non-performing companies will be identified.


The official said this is just the first list of contractors and developers, which were found to be “habitual defaulters”. NHAI informed seven out of the eight companies about their blacklisting on Tuesday.

According to NHAI, in one case, two subsidiaries of Madhucon and SREI Infrastructure Finance have been blacklisted for “several defaults” for execution of the Madurai-Tuticorin section in Tamil Nadu, which was awarded to them in July 2006. In case of Transstroy, there are five incomplete projects, including three which were awarded in 2010. The other two were bid out in 2011 and 2012.

All these projects were bid out on design, build, finance, operate and transfer (DBFOT) basis and the private players were allowed to collect toll to recover their investment.

Official details show that three other companies — Gujarat Construction, Johnson Enterprise and Pratibha Construction Engineers — have been barred from bidding for NHAI projects for their failure to fix the defaults of a project in Rajasthan, which was awarded on operation, maintenance and transfer model. The Kota-Baran project was awarded in February 2011. “These companies did not give their reply to our notices issued in August 2019,” said an NHAI official.

He added that NHAI can reduce the ban period, if the companies improve their performance. “We have also been giving bonus to private players who complete project before time without compromising on quality,” the official said.

Meanwhile, highways minister Nitin Gadkari on Tuesday reached out to insurance regulator Irdai to include road projects in the ambit of insurance. “Several countries in the world are following the practice of insuring infrastructure projects. These include Canada, Australia, the US, South Africa and the UK.”