In response to the evolving global economic situation and the resulting increase in costs of fuel, construction materials, and logistics, the Government of India has introduced a set of temporary measures to support National Highway projects.

These steps are intended to ease financial pressure on contractors and concessionaires while ensuring that construction and maintenance activities continue without disruption across the country. The measures will remain in force for three months, from April 1 to June 30, 2026, or until further review depending on global economic conditions.

Under the revised framework, payment provisions for EPC (Engineering, Procurement and Construction) and HAM (Hybrid Annuity Model) projects have been relaxed to allow monthly payments for work completed in accordance with specified quality standards.

The government has also revised the price adjustment mechanism for EPC contracts to better reflect current market trends. The Wholesale Price Index (WPI) for key inputs such as construction equipment, cement, steel, and other materials will now be considered based on data from one month prior to the relevant Interim Payment Certificate (IPC) month, instead of the earlier three-month lag.

Similarly, for bitumen, price adjustments will be based on the official retail price as on the first day of the month preceding the IPC month, replacing the previous three-month reference period.

In addition, price adjustment dues under EPC contracts will now be released along with monthly payments. For HAM projects, escalation calculated through the Price Index Multiple (PIM) will also be disbursed monthly, improving liquidity and cash flow for stakeholders involved in highway construction and maintenance.

The move underscores the government’s proactive approach to addressing sectoral challenges and sustaining the pace of infrastructure development by ensuring financial stability and operational continuity in National Highway projects. DeshBharat