In a decisive move to elevate infrastructure standards, the Ministry of Road Transport and Highways has revised the eligibility criteria for highway project bidders under the hybrid annuity model (HAM), and engineering, procurement and construction (EPC) mode.

The goal is to promote higher construction quality, prevent project delays, and ensure accountability. Union Road Transport Minister Nitin Gadkari revealed that 44 percent (419 out of 952) road projects under construction as of March 2024 were delayed, prompting the government to act.

The new norms increase the financial and technical eligibility requirements for both general highway projects and specialised works like tunnels. For HAM projects, the minimum financial capacity has been raised to 20 percent of the estimated project cost (up from 15 percent), and the net worth requirement for consortium members is now 10 percent (up from 7.5 percent).

For EPC projects, the minimum net worth has increased to 10 percent (from five percent), and the average annual turnover requirement is now 20 percent (up from 15 percent). The government plans to award 124 road projects worth Rs 3.5 lakh crore in 2025-26, with over 80 under HAM.