Policy changes that affect your contracts.
Contractor-focused summaries of MoRTH circulars, NHAI amendments, Union Budget capex, and Labour Code implementation. Each update includes the clause-level implication and what action (if any) your contracts team should take.
Recent updates
Most recent first. Each card includes a contractor action note where the policy requires a response.
NHAI mandates drone-based progress measurement for highway packages above ₹200 crore
NHAI directed that UAV/drone surveys are the primary method for monthly physical progress measurement on all EPC and HAM packages with a contract value above ₹200 crore. The Independent Engineer must use drone-generated point cloud data and orthomosaic imagery as the reference for chainage-wise progress certification. Manual measurement books remain in use for smaller structures and culverts, but corridor-level earthwork and pavement progress must be drone-certified.
Read full updateMoRTH: Road Safety Audit is mandatory at pre-opening stage before Completion Certificate
MoRTH issued an Office Memorandum requiring that all national highway projects undergo a formal Road Safety Audit at the pre-opening stage before any Completion Certificate is issued. The RSA must be conducted by an accredited team with a minimum of two Lead RSA auditors holding IRC or CSIR certification. RSA punch-list completion is a condition precedent to final payment.
Read full updateCabinet approves PMGSY Phase IV: ₹70,125 crore for 62,500 km rural roads by 2028-29
The Union Cabinet approved the fourth phase of the Pradhan Mantri Gram Sadak Yojana with a total outlay of ₹70,125 crore for FY2024-29. Phase IV targets 62,500 km of all-weather roads to connect 25,000 habitations that remain unconnected after earlier phases. Works are implemented by State PWDs on an EPC model, with central funding shared 60:40 between the Centre and states. PMGSY-IV implementation is expected to run at roughly 12,000-15,000 km per year from FY2025-26.
Read full updateMoRTH circular: DRB decisions are now advisory, not binding, for NHAI disputes
A January 2026 Ministry circular formally clarified that Dispute Review Board recommendations are advisory in nature for disputes above ₹10 crore on NHAI projects. The circular aligns NHAI practice with the 2023 Supreme Court ruling on DRB enforceability. Both parties must proceed through CCIE conciliation or arbitration even if a DRB has already ruled.
Read full updateBOT Toll MCA amended: termination payment cap raised from 100% to 115% of TPC
MoRTH amended the Model Concession Agreement for BOT Toll projects. The most contractor-significant change: NHAI's default termination payment is now capped at 115% of Total Project Cost, up from 100%. The amendment also clarified the mechanism for capacity augmentation requests initiated by NHAI after the concession is operational.
Read full updateHAM MCA revised: traffic risk insulation reconfirmed, TPC coverage rules tightened
Several 2024 amendments to the Hybrid Annuity Model concession agreement clarified that the concessionaire bears zero traffic risk (annuity is paid regardless of toll collection), but tightened the definition of qualifying costs in TPC. Changes also introduced milestone-linked annuity adjustment triggers tied to NHAI's independent engineer certification process.
Read full updateUnion Budget 2025-26: ₹11.11 lakh crore capex, ₹2.78 lakh crore for road transport
India's Union Budget 2025-26 maintained the infrastructure capex push at ₹11.11 lakh crore. The Ministry of Road Transport and Highways received an allocation of ₹2.78 lakh crore. Of this, ₹1.68 lakh crore is for NHAI project awards, with a stated target of awarding 5,000 km of new highway contracts in the year. PM GatiShakti integration was made mandatory for all projects above ₹500 crore.
Read full updateFour Labour Codes have Presidential assent but implementation remains stalled in most states
The Code on Wages, Industrial Relations Code, Code on Social Security, and Occupational Safety, Health and Working Conditions Code all received Presidential assent but require state-level implementing rules before they take effect. As of early 2025, only a handful of states had notified implementing rules. Construction contractors continue to operate under the existing framework: Contract Labour (Regulation and Abolition) Act 1970, Building and Other Construction Workers Act 1996, and the respective state Shops Acts.
Read full updateParivesh 2.0: all forest and wildlife clearances must route through centralized portal
MoEFCC mandated that all Environmental Clearance (EC), Forest Clearance (FC), and Wildlife Clearance applications use the Parivesh 2.0 single-window portal. For highway projects, Stage 1 forest clearance must be completed within 60 days and Stage 2 within 45 days of FC grant. Projects on forest land without valid Stage 2 clearance cannot begin earthworks in the forest zone.
Read full updateNIT documents reference these policies. Your team should too.
Special Conditions of Contract in NHAI and CPWD NITs embed or override clauses from these frameworks. A contracts manager who has read the MCA amendment before bid day catches hidden liabilities. One who hasn't, doesn't. The gap shows up in your contingency pricing and in arbitration, years later.
Primary sources
This page is updated quarterly. For live circulars and daily announcements, use these portals directly.
OMs, notifications, and policy circulars from the Ministry of Road Transport and Highways
morth.nic.in/OMs-Circular-Other-Notification
Press Information Bureau releases covering road, rail, and port announcements
pib.gov.in/
National Highways Authority: project awards, NIT publications, policy updates
nhai.gov.in/
Trade publication covering Indian infrastructure policy and contractor impact
www.constructionworld.in/
Ministry of Finance annual budget documents: capex allocations and sectoral priorities
www.indiabudget.gov.in/
MoEFCC single-window for environmental, forest, and wildlife clearances
parivesh.nic.in/
Your team reads NITs. CivilBolt reads the policy behind them.
CivilBolt flags when a tender's Special Conditions override standard MCA clauses. Your contracts team sees the delta before they price the bid.