IndiaPosted at: Nov 2 2026 10:39AM


NHAI sets new funding, approval rules for projects undertaken for government agencies

New Delhi, Nov 2 (UNI) The National Highways Authority of India (NHAI) has laid down fresh guidelines for executing infrastructure projects for government departments, public sector undertakings, and other agencies, requiring them to bear the entire project cost and introducing separate financial and administrative approval procedures.
Under the policy circular, NHAI will undertake such projects as deposit works at the request of the concerned agency, which must provide funds in advance or in mutually agreed phases.
"Entire (100 per cent) expenditure for these Works shall be met from the funds provided by the concerned Principal Agency," the authority said.
The circular applies to works undertaken for government departments, public sector undertakings, and other entities, excluding the Ministry of Road Transport and Highways (MoRTH).
It specifies that projects costing up to Rs 100 crore, excluding GST, require approval from the NHAI chairman, while projects exceeding Rs 100 crore require approval from the NHAI Executive Committee.
The Internal Appraisal Committee will examine proposals in both categories.
The guidelines require the requesting agency to submit the proposed scope of work and relevant technical details for scrutiny. After in-principle approval from the chairman, a detailed project report covering feasibility, cost estimates, and engineering designs will be prepared.
NHAI has also introduced specific provisions to address cost differences during project execution.
Any variation up to 20 per cent over the approved sanctioned cost must be agreed upon by the requesting agency at the initial approval stage or through a suitable memorandum of understanding.
If the variation exceeds 20 per cent, fresh approval and funding sanction from the agency will be required before additional expenditure is incurred.
For variations in awarded costs, approval powers have been divided among the concerned NHAI member, the chairman, and the Executive Committee, depending on the extent of the increase.
The authority will charge an agency fee of 1 per cent of the civil cost. Separate provisions prescribe supervision charges of three per cent of project cost for works costing up to Rs 100 crore and two per cent for projects exceeding that amount.
The circular also provides for a separate provision of one per cent of the project cost towards the preparation of a detailed project report, wherever required, subject to adjustment against actual expenditure.
Where proposed deposit works overlap an existing NHAI project, priority will be given to examining whether the existing contractor or concessionaire can execute the additional work.
If the contractor or concessionaire does not agree, the work may be awarded separately through competitive bidding.
NHAI has made it clear that work can begin only after necessary approvals are in place and advance funds are received under the agreed funding arrangement.
The guidelines require a separate bank account for each deposit work to ensure proper accounting and monitoring of expenditure.
Financial officers at project implementation units and NHAI headquarters will jointly prepare quarterly reconciliation statements covering deposits received, charges levied, and payments made.
The authority will retain the power to approve extensions of up to six months beyond the stipulated project duration. Further extensions will require prior approval from the requesting agency.
Any unspent funds will be refunded to the concerned agency after completion of the project, without interest liability on NHAI.
Completed works will be formally handed over to the requesting agency after issuance of the applicable completion certificate and a No Dues Certificate from NHAI's Finance Division.
NHAI will handle disputes arising during execution on behalf of the concerned agency in accordance with the applicable contractual dispute-resolution provisions.
The circular was issued by Chief General Manager (Coordination), C.S. Sanjay Kumar Patel.
UNI KK ATP ARN
Tags: #NHAI sets new funding# approval rules for projects undertaken for government agencies
More News

Delhi CM meets Gadkari, discusses progress of de-congestion projects

02 Nov 2026 | 9:26 PM

New Delhi, Nov 2 (UNI) Delhi Chief Minister Rekha Gupta on Monday met the union Minister for Road Transport and Highways Nitin Gadkari, and held detailed discussions on the progress of various ongoing decongestion projects for the national capital, aimed at ensuring smooth movement of trafffic.
They also discussed the expansion of city's road network, and improving the overall transportation infrastructure by different ways and interventions with the help of the Centre.

see more..

Shah and Nabin lead protests against Opposition’s ‘arajakta’, accuse Rahul of ‘protecting’ Bangladeshi infiltrators

02 Nov 2026 | 7:58 PM

Vibha Sharma
New Delhi, Nov 2 (UNI) A day after the INDIA bloc’s Chalo Dilli’ rally over alleged irregularities in the revision of electoral rolls, ruling BJP’s top leaders, union Home Minister Amit Shah and party president Nitin Nabin, led counter-protests in different parts of the country under its ‘Loktantra Bachao, Arajakta Hatao’ counter-campaign.

see more..

SC allows limited sale, bursting of green crackers in Delhi-NCR for Diwali; complete ban from Nov 9

02 Nov 2026 | 7:44 PM

Parmod Kumar
New Delhi, Nov 2 (UNI) The Supreme Court has permitted the manufacture, sale and bursting of certified green firecrackers in Delhi-NCR for a strictly regulated period around Diwali, allowing their sale from November 4 to 6 and bursting for three hours each on November 7 and 8, while directing that the complete prohibition on firecrackers will resume from November 9, 2026.

see more..

PM Modi pitches household solar revolution, says Clean Energy Holds Key to Future Security

02 Nov 2026 | 7:33 PM

New Delhi, Nov 2 (UNI) Prime Minister Narendra Modi on Monday called for a fresh wave of innovation in renewable energy, urging India's startups, IITs, entrepreneurs and scientific community to develop affordable solar solutions capable of meeting a substantial portion of household energy requirements, asserting that clean energy would be central to India's future energy security.

see more..

Vijender Gupta inaugurates SAU auditorium, releases Maj Gen Bakshi’s book on Vedic science

02 Nov 2026 | 7:20 PM

New Delhi, Nov 2 (UNI) Emphasising the need to reconnect younger generations with India’s intellectual and civilisational heritage through research and fresh perspectives, Delhi Legislative Assembly Speaker Vijender Gupta on Monday said that the future of the country’s intellectual legacy would depend on the questions young people were willing to ask.

see more..