Indian highway builders discuss project challenges on a new highway.
The National Highways Builders Federation (NHBF) has appealed to India’s road transport and highways minister, Nitin Gadkari, for escalation support of 17-18% for national highway projects. This request aims to restore the financial viability of projects strained by rising input and logistics costs.
In its submission, the NHBF cited extraordinary and unforeseen increases in input and logistics costs that were not anticipated during the bidding process. These cost escalations have disrupted the financial equilibrium of existing contracts, impacting contractors and concessionaires.
In addition to financial support, the NHBF has requested a three-to-six-month extension of project timelines and a waiver of penalties. These measures are intended to provide further relief to companies facing financial pressures due to circumstances beyond their control.
The outcome of these requests could significantly impact the pace and financial health of national highway projects across India, influencing both domestic and international investors in the infrastructure sector.
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