The National Highways Builders Federation (NHBF) has formally requested the Indian government to extend critical relief measures for highway contractors and concessionaires until December 31, 2026. The federation cites ongoing market instability and geopolitical tensions in West Asia as primary reasons for needing continued support, warning of significant financial stress and project delays if the measures are discontinued.
Continued Market Volatility Threatens Projects
Originally implemented through a series of circulars by the Ministry of Road Transport and Highways (MoRTH) earlier this year, these relief measures were designed to mitigate the impact of extraordinary market conditions on national highway projects. The NHBF emphasizes that while these measures have provided crucial support, the underlying circumstances necessitating them – including volatility in crude oil prices, fuel costs, transportation expenses, and supply chain disruptions – persist.
The federation highlighted that discontinuing these protective measures after September 30, as currently scheduled, would expose ongoing projects to severe financial pressures. Many projects, especially those operating on tight margins, could face significant challenges, potentially leading to a surge in contractual disputes, claims, and ultimately, delays in project completion.
NHBF Seeks Extension on Existing Terms
NHBF has specifically asked for the extension to be granted under the same terms and conditions as the existing relief circulars, ensuring no changes to their scope, eligibility, or applicability. This continuation, the federation argues, is vital for maintaining stability and predictability within the sector.
Extending these provisions would offer greater certainty to contractors and concessionaires, enabling them to continue project execution without interruption during this period of economic uncertainty. Furthermore, it would help preserve the financial viability of current contracts and facilitate the timely completion of essential national highway infrastructure development across the country.