Amendments to the Standard Operating Procedure for Takeover of Highway Projects Post Concession/Defects Liability Period

The National Highways Authority of India (NHAI), vide Policy Circular No. 18.103/2025 dated April 5, 2025, has issued revised guidelines amending the existing procedure for takeover of highway projects upon the conclusion of the concession period or defects liability period.

Key modifications include:

• Mandatory Pre-Takeover Inspection Timeline: Inspection of the project highway must now be conducted and reported at least six (6) months prior to the anticipated takeover date. This measure is intended to allow adequate time for the identification and rectification of defects.

• Advance Planning for Post-Takeover Activities: Contracts related to operations and maintenance, capacity augmentation, and tolling must be initiated at least six (6) months in advance, with estimates and tender documents to be prepared based on FWD/NSV testing reports, road safety audits, and other forward-looking assessments.

• Integration with PBMC/STMC Proposals: The inspection report, along with any identified defect notices, must be submitted as part of Performance-Based Maintenance Contract (PBMC) or Short-Term Maintenance Contract (STMC) proposals, where the concession or defect liability period is nearing expiry. Importantly, the Letter of Award for such contracts shall be issued only after the Takeover Certificate is granted.

• Detailed Classification of Defects: The inspection report must clearly delineate the defects that are to be rectified by the contractor/concessionaire, and those that fall outside their contractual scope.

These amendments aim to streamline the transition process and ensure a seamless and well-documented handover of highway assets.