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Road Ministry plans to double DLP for EPC contracts

Friday, 16 Feb 2024
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The Road Ministry plans to double the defect liability period (DLP) under engineering, procurement, construction (EPC) contracts to 10 years to improve the quality of construction.

Under the EPC model, the responsibility for maintenance of national highways rests with the government after DLP (five years) is over, during which the contractor is responsible for maintenance. The government funds the entire infrastructure project under the EPC model, while the private sector partner only provides engineering and construction assistance.

Consultation with experts and stakeholders is ongoing for increasing the DLP as the ministry is keen on improving the quality of construction. the objective is to make good quality roads, which will last for a longer duration with less maintenance required by the Centre similar to roads built under hybrid annuity mode (HAM) and built-operate-transfer (BOT) mode.

National Highways Authority of India (NHAI) and National Highways and Infrastructure Development Corporation (NHIDCL) are mainly responsible for the construction of national highways and expressways in India. Maintenance of national highways is financed by the Central Road Infrastructure Fund.

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