JSA Newsletter | Highways and Logistics | January to March 2026 Edition

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This edition of JSA Highways and Logistics Newsletter focuses on key developments undertaken in the Indian roadways and logistics sector between January – March 2026.

 

Union Budget 2026-27: Fiscal allocation and measures taken for the roads and highways sector

The Union Budget for the Financial Year (“FY”) 2026-27 (“Budget”), announced on February 1, 2026, has positive news for the roads, highways and logistics sector. The allocation for the Ministry of Road Transport and Highways (“MoRTH”) which was INR 2,87,333 crore (Indian Rupees two lakh eighty-seven thousand three hundred and thirty-three crore) in the previous year’s budget has been increased to approximately INR 3,10,000 crores (Indian Rupees three lakh ten thousand crore).

The increased budget would assist in the completion of implementation or large roadways project such as National Highways (“NHs”), expressways, greenfield access controlled corridors and this budgetary allocation being supported by funds generated from tolls and asset monetisation.

Source: Expenditure Budget for MoRTH

 

Revisions carried out to the Model Concession Agreement for Multi Modal Logistics Parks

Keeping in mind certain comments and suggestions received from stakeholders, the inter-ministerial committee comprising of MoRTH, NITI Aayog, Department of Economic Affairs, Department of Financial Services, Department of Legal affairs and Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry approved certain changes to the Model Concession Agreement (“MCA”) for Multi Modal Logistics Park (“MMLP”) projects. Some of the key changes are as follows:

  1. the revised MCA clarifies that change in ownership of the concessionaire cannot take place with the prior approval of the concessioning authority (“Authority”) and only upon the fulfilment of the following three conditions: (a) no objection from the senior lenders; (b) achievement of Commercial Operation Date (“COD”); (c) the concessionaire not being in default of payment of concession fee to the Authority. The MCA also makes it clear that change in ownership will not be permitted where Authority has imposed damages on the concessionaire or the concession agreement is in the process of being terminated. The revised MCA also makes it clear that Authority must provide its approval for change in ownership within 30 (thirty) days of all 3 (three) conditions being fulfilled;
  2. the revised MCA states expressly that the Authority has to provide a minimum of 95% of the right of way for the project site and 100% of the land area required for the main carriageway required for the access roads and rail connectivity;
  3. the revised MCA provides a more detailed provision when it comes to utilities shifting. The revised MCA states that while the concessionaire shall be responsible for shifting of utilities, if the concessionaire discovers any utilities which have not been identified in the concession agreement it may inform the Authority within 60 (sixty) days from the appointed date i.e., the date on which all conditions precedent are satisfied, and the cost of shifting such additional utilities shall be treated as change in scope/variation. The revised MCA also states that if the concession agreement is terminated prior to the appointed date, the Authority must reimburse the concessionaire for all costs incurred by the concessionaire in shifting utilities provided that utility shifting has been carried out by the concessionaire in compliance with the terms of the concession agreement;
  4. during the construction period, the revised MCA mandates that the concessionaire install a functional location tracking system in each construction vehicle and will also provide in the central server of the Authority information such as real time location of each construction vehicle, timestamps indicating start and end time of movement of each vehicle and mileage covered by each vehicle. The revised MCA also mandates the concessionaire to provide monthly video recordings through drones or otherwise to the Authority demonstrating the progress of construction works;
  5. the revised MCA introduces the concept of partial COD wherein if a part of the MMLP or rail terminal along with the entire access road is completed as per the provisions of the concession agreement, such part of the MMLP and rail terminal may enter into commercial service and the concessionaire will have the right to collect fee from such completed part;
  6. the revised MCA also modifies the key performance indicators (KPIs) which have to be complied with by the concessionaire including revising the timelines pertaining to the number of crane moves per container and the average vehicle dwell time at the MMLP;
  7. the revised MCA includes a new provision dealing with financial support during construction of the access roads and rail terminal and rail connectivity infrastructure which has to be constructed by the concessionaire as part of its scope of work. This construction support will be released to the concessionaire in 10 (ten) equal instalments during the construction period and release of each instalment will be dependent on the physical progress of access roads and rail connectivity infrastructure;
  8. the revised MCA also introduces a provision dealing with steps to be taken for future expansion of the project wherein at any time after the tenth anniversary of the COD, the aggregate annual container traffic exceeds 70% of the design capacity, the Authority will have the right to undertake development of the future expansion area i.e. a land parcel designated for future expansion. If the future expansion area is to be developed by the Authority, a competitive tendering process will be undertaken to select a developer provided that the concessionaire shall be provided with a right of first refusal in relation to such tendering process and provided the conditions specified in the concession agreement are met; and
  9. the revised MCA also prescribes a longer concession period of 45 (forty-five) years as opposed to the 30 (thirty) year period which was considered earlier. This ensures that concessionaires get a longer time period to realise revenues from the project.

Source: The revised MCA for MMLPs may be accessed here

 

Dispute resolution framework overhauled for Build-Operate-Transfer (Toll), Hybrid Annuity Mode and Engineering, Procurement and Construction contracts

MoRTH, vide its circular dated January 12, 2026 has amended the dispute resolution provisions in the MCA for Build-Operate-Transfer (“BOT”) (toll), Hybrid Annuity Mode (“HAM”) and Engineering, Procurement and Construction (“EPC”) projects. The amendment aligns highway sector contracts with the Ministry of Finance Guidelines on Arbitration and Mediation in Domestic Public Procurement of June 2024. The revised clause applies with immediate effect and supersedes existing provision, except for ongoing arbitration matters, which will continue under the earlier framework.

As per the revised provision for dispute resolution, for disputes with value below INR 10,00,00,000 (Indian Rupees ten crore), and which cannot be settled amicably between the parties within a period of 30 (thirty) days or any other period agreed mutually between the parties, the same will be referred to either the Society for Affordable Redressal of Disputes or the India International Arbitration Centre for arbitration.

For disputes with value equal to INR 10,00,00,000 (Indian Rupees ten crore) and above, the revised provision states that such disputes which remain unresolved after amicable discussion between parties, shall be referred to conciliation under the Arbitration and Conciliation Act, 1996. The revised provision clarifies that conciliation under the Arbitration and Conciliation Act, 1996 will cease to apply once the provision relating to substitution of conciliation with mediation are notified under the Mediation Act, 2023. Upon such notification, any reference to ‘conciliation’ under the dispute resolution provisions of the MCA will be deemed to mean ‘mediation’ under the Mediation Act, 2023.

The revised provision also makes it clear that for disputes which are equal to INR 10,00,00,000 (Indian Rupees ten crore) and above shall not be referred to arbitration under any circumstance and that all declaratory or non-monetary disputes between contracting parties will not be referred to arbitration as well.

A subsequent clarification was issued by MoRTH, vide circular dated January 28, 2026 and which was reiterated by the National Highways Authority of India (“NHAI”) vide its circular dated February 12, 2026, clarifying that for contracts already signed or bids already awarded before January 12, 2026, the amended dispute resolution clauses will apply only if the concessionaire or contractor has consented to the modified provisions being made applicable to such contracts.

Source: MoRTH circular dated January 12, 2026 and NHAI circular dated February 12, 2026

 

NHAI declares robust growth in NH development

NHAI vide its press release dated April 1, 2026, declared that it was able to construct 5,313 (five thousand three hundred and thirteen) kilometers (“km”) of NHs during the FY 2025-2026. The length of NHs constructed is 15% (fifteen percent) higher than the target length which was proposed to be constructed i.e., 4,640 (four thousand six hundred and forty) km.

The aforementioned press release also stated that NHAI’s capital expenditure in FY 2025-2026 for development of NH infrastructure was estimated to be INR 2,44,362 crore (Indian Rupees two lakh forty-four thousand three hundred and sixty-two crore). This expenditure was about 2.5% (two point five percent) higher than the government budgetary support for the year. The differential amount between capital expended and the budgetary support has been met through NHAI’s own resources.

Source: NHAI press release dated April 1, 2026

 

Amendments to NHs Fee (Determination of Rates and Collection) Rules, 2008

Toll fee revision during upgradation of two-lane highways with paved shoulders

NHAI, vide circular dated January 13, 2026, has reiterated gazette notification of MoRTH dated January 1, 2026, which amends the NHs Fee (Determination of Rates and Collection) Rules, 2008 (the “NH Fee Rules, 2008”). The amendment provides that for a 2 (two) lane highway with paved shoulders (“2L-PS“) which is under upgradation to a 4 (four) lane highway, the rate of user fee for that section will be reduced. From the commencement of the upgradation works until project completion, the user fee leviable will be 30% of the fee otherwise applicable under sub-rule 4(2) of the NH Fee Rules, 2008, with no annual revision during this period between commencement of upgradation and project completion.

The NHAI circular has directed that this regime is to be followed for both ongoing and new projects involving upgradation of 2L-PS highways to 4 (four) or more lanes.

Source: MoRTH gazette notification dated January 1, 2026 and NHAI circular dated January 13, 2026

 

Tolling relief for partially operational National Expressways

The MoRTH issued a gazette notification dated February 4, 2026, amending the NH Fee Rules, 2008, providing a temporary toll-relief measure for National Expressways (“NEs”) that are only partially operational with these changes being highlighted by NHAI in its press release dated February 12, 2026. Under the existing framework, user fee on NEs is charged at a 25% premium over the user fee applicable to NHs for the completed length, even where the NE is not yet fully open from end to end.

Pursuant to the notified NHs Fee (Determination of Rates and Collection) Amendment Rules, 2026, when an NE is not opened end to end, toll fee for the completed stretch will, during the limited validity of this provision, be charged at the lower NH rate instead of the expressway premium. The measure will apply from February 15, 2026 for up to 1 (one) year or until the concerned NE becomes fully operational, whichever is earlier. This measure is intended to encourage users to use the opened stretches of NEs leading to decongesting of parallel NH routes thereby supporting faster and more economical movement of logistics and passengers.

Source: Gazette notification dated February 4, 2026 and NHAI press release dated February 12, 2026

 

Digital enforcement of unpaid toll through amended Rule 14 of the NH Fee Rules, 2008

The Government of India has amended the NH Fee Rules, 2008, vide gazette notification dated March 17, 2026 and NHAI has explained these changes in its press release dated March 18, 2026. The amendments introduce a technology-driven framework to strengthen toll compliance across NHs. The amendments have come into effect from March 17, 2026. The amendment introduces the following key changes:

  1. the amendment defines ‘unpaid user fee’ as user fee payable by a motor vehicle for use of a section of a NH where the Electronic Toll Collection (“ETC”) Infrastructure has recorded the passage of such vehicle but has not received the applicable user fee;
  2. the amendment introduces a structured recovery mechanism for unpaid user fee through an e-notice system, enabling timely intimation to vehicle owners via short message service, email and digital platforms. Integration with the National Vehicle Registry (“VAHAN”) database will further support seamless identification and enforcement;
  3. the amendment further enables technical and system integration of the National ETC system with VAHAN for purposes of enforcement and realisation of unpaid user fee;
  4. the unpaid user fee payable pursuant to an e-notice is generally twice the applicable user fee, but if payment is made within 72 (seventy-two) hours from the time of issuance of the e-notice, only the original user fee amount is payable, without the additional component. Delayed payments may attract additional charges and restrictions on vehicle-related services;
  5. any owner or driver of a mechanical vehicle aggrieved by an e-notice may, within 72 (seventy-two) hours from the time of issuance of the e-notice, submit a representation through the designated electronic portal and where such representation has been made, the executing authority or the concessionaire, as the case may be, will examine and dispose of such representation and communicate its decision to the owner within 5 (five) days from the date of receipt of the representation; and
  6. if unpaid user fee remains outstanding beyond 15 (fifteen) days from issuance of the e-notice and no representation from the vehicle owner is pending, the amount may be recorded in the VAHAN system, and suitable restrictions may be imposed on vehicle-related services until dues are cleared.

Source: Gazette notification dated March 17, 2026 and NHAI press release dated March 18, 2026

 

NHAI to achieve asset monetisation target through Infrastructure Investment Trust and Toll-Operate-Transfer models

NHAI vide press release dated March 30, 2026, stated that it has largely achieved its goal for asset monetisation for the FY 2025-2026. NHAI has declared that it has realised INR 28,307 crore (Indian Rupees twenty-eight thousand three hundred and seven crore) through a combination of public Infrastructure Investment Trust (“InvIT”), private InvIT, and Toll-Operate-Transfer (“TOT”) model, including TOT Bundles 17 and 18. NHAI has also stated that it expects TOT Bundle-19 to be awarded and with its award NHAI expects to achieve the Government of India’s asset monetisation target of INR 30,000 crore (Indian Rupees thirty thousand crore) FY 2025–26.

As part of the aforementioned press release NHAI has successfully monetised over 310 (three hundred and ten) km of NHs under InvIT round-5 with this round comprising of two key NH sections i.e., 255.9 (two hundred and fifty-five point nine) km long Amravati–Chikhali–Tarsod section of NH-53 in Maharashtra and 54.3 (fifty-four point three) km long Gundugolanu–Chinna Avutapalli section of NH-16 in Andhra Pradesh. NHAI was also successful in realising INR 3,087 crore (Indian Rupees three thousand and eighty-seven crore) under TOT bundle 18 which includes 74.5 (seventy-four point five) km long Chandikhole–Bhadrak section of NH-16 in Odisha.

Source: PIB Press Release dated March 30, 2026

 

Fast-track approvals for right of way and access permissions for city gas distribution infrastructure on NHs

Considering the constraints pertaining to availability of liquefied petroleum gas and the need for the faster establishment of City Gas Distribution (“CGD”) network, MoRTH vide its circular dated March 24, 2026 has set out an accelerated approval framework for establishment of CGD infrastructure along NH corridors with reduced timelines. The same has been adopted by NHAI vide its policy circular dated March 31, 2026.

As a special measure for a period of 3 (three) months from the date of the MoRTH circular expedited timelines have been proposed for granting Right of Way (“RoW”) and access permissions while processing timelines for CGD-related applications.

  1. For RoW permissions:
  2. proposals for grant of RoW for laying down of gas pipelines along NHs will be processed within an expedited timeline of 15 (fifteen) days;
  3. the requirement of placing such proposals in the public domain is dispensed with to avoid procedural delay; and
  4. all proposals are to be processed through the Rajmarg Pravesh online portal (“RP Portal”) in order to ensure time bound disposal with decision-making powers continuing to vest in regional officers or competent authorities under the Control of NHs (Land and Traffic) Act, 2002, ensuring adherence to technical and safety standards.
  5. For access permissions relating to compressed natural gas or Liquefied Natural Gas stations, the circular does not alter the existing guidelines but requires that all such applications be accorded priority and disposed of within a maximum period of 30 (thirty) days through the RP Portal, subject to fulfilment of prescribed norms.

The circular states that damages to NH assets during work execution will be charged to the executing agency based on the schedule of rates plus 15%, including the Central Public Works Department supervision fees, with permissions potentially withheld if restoration is not completed.

Source: NHAI policy circular dated March 31, 2026

 

Amendment to Central Motor Vehicles Rules to discourage fee evasion

MoRTH, vide notification dated January 14, 2026, has amended the Central Motor Vehicles Rules, 1989, to improve user fee compliance, enhancing efficiency of ETC and discouraging user fee evasion on NHs. Further, the amendments link the clearance of unpaid NH user fee with vehicle related services. Key amendments are as follows:

  1. insertion of the definition of ‘unpaid user fee’ which refers to the user fee payable by a motor vehicle for use of a section of a NH, where the ETC infrastructure has recorded the passage of such vehicle but has not received the applicable user fee levied in accordance with the NH Act, 1956;
  2. under Form 28 (application and grant of No Objection Certificate (“NOC”)) an additional requirement is inserted for providing particulars of unpaid user fee. Therefore, any details of unpaid user fee must be provided to the registering authority while seeking NOC;
  3. under Rule 55 (transfer of ownership) a requirement has been inserted to provide a NOC (under Form 28) in the list of documents required to be accompanied with the application for transfer of ownership of a motor vehicle;
  4. under Rule 58 (NOC), a condition has been inserted whereby it is provided that the registering authority will not grant the NOC until unpaid user fee is paid by the applicant;
  5. under Rule 62 (validity of certificate of fitness) has been amended to provide that certificate of fitness will not be renewed or generated until unpaid user fee is paid by the applicant; and
  6. under Rule 90 (additional conditions for national permit) is amended to provide that national permit must be issued subject to payment of unpaid user fee.

The measures introduced through the amendment are expected to enhance compliance in payment of user fee on NHs, strengthen digital enforcement through integration of tolling and vehicle registration databases, reduce toll evasion and improve operational efficiency of ETC systems. The initiative is also expected to support the progressive adoption of advanced tolling technologies including Multi-Lane Free Flow (MLFF) tolling on NHs.

Source: MoRTH gazette notification January 14, 2026

 

Cabinet Committee on Economic Affairs approves various projects

During the period between January – March 2026, the Cabinet Committee on Economic Affairs, Government of India has approved several road projects to enhance the efficiency of freight movement, reducing logistics cost and driving socio-economic growth in the region. These projects which have been approved have been set out below:

 

HAM projects:

  1. Construction of 4 (four) Lane Access-Controlled NH-927 from Barabanki to Bahraich (101.515 (one hundred and one point five one five) km) in Uttar Pradesh at a cost of INR 6969.04 crore (Indian Rupees six thousand nine hundred and sixty nine point zero four crores). Upon completion, the project will provide connectivity to key economic, social, and logistics nodes across Uttar Pradesh. Additionally, the corridor will enhance multi-modal integration by connecting with 3 (three) economic nodes, 2 (two) social nodes and 12 (twelve) logistic nodes, providing enhanced multimodality with Rupaidiha land port and airports thereby facilitating faster movement of goods and passengers across the region.

Source: PIB Press Release dated March 18, 2026

  1. Construction of a 31.42 (thirty one point four two) km. Greenfield Connectivity corridor to Jewar International Airport from Delhi-Faridabad-Ballabhgarh-Sohna spur of the Delhi-Mumbai Expressway in the States of Uttar Pradesh and Haryana at a revised total capital cost of INR 3630.77 crore (Indian Rupees three thousand six hundred and thirty point seven seven crores). The corridor will provide direct connectivity from South Delhi, Faridabad and Gurugram to Jewar International Airport. About 11 (eleven) km. length of this project is to be developed as elevated highway with additional cost of this proposed elevated portion being INR 689.24 crore (Indian Rupees six hundred and eighty nine point two four crores) (with the Government of Haryana bearing INR 450 crore for elevated corridor).

Source: PIB Press Release dated March 10, 2026

  1. Upgradation of Dhamasiya–Bitada/ Movi (47.46 (forty seven point four six) km) and Nasarpore–Malotha (60.21 (sixty point two one) km) in Gujarat to 4 (four) lane sections with a total project length of 107.67 (one hundred and seven point six seven) km. and total capital cost of INR 4583.64 crore (Indian Rupees four thousand five hundred and eighty three point six four crore). The approved project is expected to generate about 19,38,000 (nineteen lakh thirty eight thousand) man-days of direct employment and 22,82,000 (twenty two lakh eighty two thousand) man-days of indirect employment.

Source: PIB Press Release dated February 14, 2026

  1. Widening of NH-167 from Gudebellur to Mahabubnagaron the Hyderabad-Panaji Economic Corridor to 4 (four) lane standard in Telangana with a total project length of 80.01 (eighty point zero one) km. and total capital cost of INR 3175.08 crore (Indian Rupees three thousand one hundred and seventy-five point zero eight crore). The project will provide significant benefit to Narayanpet and Mahabubnagar districts in the state of Telangana. This will enhance the efficiency of freight movement, reducing logistics cost and driving socio-economic growth in the region.

Source: PIB Press Release dated February 14, 2026

 

EPC projects:

  1. Construction of 4 (four) lane access-controlled greenfield connectivity from Gohpur on NH-15 to Numaligarh on 715 section including 15.79 (fifteen point seven nine) km. of road cum rail tunnel under river Brahmaputra to be developed at a total capital cost of INR 18,662 crore (Indian Rupees eighteen thoudand six hundred and sixty-two crore) in Assam.

Source: PIB Press Release dated February 14, 2026

  1. Rehabilitation and upgradation of the Ghoti–Trimbak (Mokhada)–Jawhar–Manor–Palghar section of NH-160A in Maharashtra with a total length of 154.635 (one hundred and fifty-four point six three five) km and a total capital cost of INR 3,320.38 crore (Indian Rupees one hundred fifty four point six three five crore).

Source: PIB Press Release dated February 14, 2026

 

Raajmarg Infra Investment Trust

NHAI’s sponsored public Infrastructure Investment Trust ‘Raajmarg Infra Investment Trust’ wins concessions for five highway assets

NHAI, on February 9, 2026, announced that it has accepted an offer of approximately INR 9,500 crore (Indian Rupees nine thousand five hundred crore) from its sponsored public InvIT, Raajmarg Infra Investment Trust (“RIIT”), for monetisation of 5 (five) operational NH sections aggregating about 260 (two hundred and sixty) km across Jharkhand, Andhra Pradesh, Tamil Nadu and Karnataka. The monetised assets include 80.52 (eighty point five two) km long Gorhar–Barwa Adda section in Jharkhand, 69.4 (sixty-nine point four) km long Chilakaluripet–Vijayawada section in Andhra Pradesh, 32.6 (thirty-two point six) km long Chennai Bypass, 33 (thirty-three) km long Chennai–Tada section in Tamil Nadu and 44.6 (forty-four point six) km long Neelmangla–Tumkur section in Karnataka. The transaction advances the Government of India’s National Monetisation Pipeline objectives by unlocking value from mature road assets and widening public and retail investor participation in NH infrastructure. Over the next 3 (three) to 5 (five) years, NHAI proposes to offer additional assets of around 1,500 (one thousand five hundred) kms to RIIT, positioning the InvIT as a long‑term, yield‑oriented investment vehicle while deepening NHAI’s asset monetisation programme.

Source: NHAI press release dated February 9, 2026

 

NHAI-sponsored public issue of RIIT listed on Bombay Stock Exchange

NHAI, vide its press release dated March 24, 2026, announced the successful listing of the maiden public issue of its publicly offered InvIT, RIIT, on the Bombay Stock Exchange. The listing was completed within 3 (three) months from Securities Exchanges Board of India approval of RIIT and marks a significant milestone in enabling public participation in NH infrastructure through investment avenues

The initiative aims to transform road users into investors, thereby promoting broader ownership of infrastructure assets and supporting capital recycling for future development. RIIT is managed by Raajmarg Investment Managers Private Limited under a public-private partnership structure involving NHAI, financial institutions, and banks, ensuring strong governance and professional management.

The public issue witnessed strong investor interest, with the retail portion being oversubscribed nearly 14 (fourteen) times. Participation from institutional and strategic investors, such as Employees Provident Fund Organisation and State Bank of India Life Insurance subscribed about INR 1,260 crore (Indian Rupees one thousand two hundred and sixty crore)), anchor investors about INR 1,728 crore (Indian Rupees one thousand seven hundred and twenty-eight crore), and the remaining approx. INR 2,100 crore (Indian Rupees two thousand one hundred crore) offered to the public, reflects robust confidence in India’s infrastructure sector and asset monetisation programme.

Overall, the listing represents a key step in expanding investment opportunities, enhancing infrastructure financing, and advancing India’s long-term infrastructure development goals.

Source: NHAI press release dated March 24, 2026

 

Revised Standard Operating Procedure for taking over completed highway projects

NHAI, vide policy circular dated February 10, 2026, revised the Standard Operating Procedure (“SOP”) for taking over project highways developed under BoT, HAM, Operate-Maintain-Transfer (“OMT”), TOT, InvIT and EPC modes upon completion of the concession period or defect-liability periods. In supersession of specified paragraphs of earlier policy circulars, the revised SOP strengthens pre-takeover inspection and documentation requirements.

As pe the previous iteration of the SOPs, in addition to the verification of project assets, records, as-built drawings, applicable permits and other documents by the independent engineer or authority engineer, a designated team was also required to inspect the project highway and submit a report to the concerned member at NHAI at least 6 (six) months prior to the likely takeover date. The revised SOPs have now specified the composition of the team which will be carrying out this inspection based on the nature of the project.

For EPC projects, the team must comprise of a team leader selected by the concerned member of NHAI from the empanelled list for quality inspections of the standards, research, development and quality division, a general manager (technical) or deputy general manager (technical) at NHAI Headquarters, a general manager (technical) or deputy general manager (technical) of the concerned regional office, and the technical director of the consultancy firm acting as the appointed engineer for the project.

For BOT toll and annuity, HAM, OMT, TOT and InvIT projects, the team composition is expanded to include 1 (one) financial consultant from the list circulated by the finance division and 1 (one) advisor (technical). The revised SOPs states that specifically for HAM and BOT projects the aforesaid team shall examine all financing documents, annual audited accounts and statements, and related records in the context of disinvestment requirements.

Source: NHAI policy circular dated February 10, 2026

 

Cashless treatment of road accident victims

MoRTH, vide press release dated February 14, 2026, has launched the Prime Minster – Road Accident Victim Hospitalisation and Assured Treatment (“PM RAHAT”) scheme- a cashless scheme for treatment of road accident victims. Some of the key provisions of the PM RAHAT scheme are:

  1. integration with the Emergency Response Support System (ERSS) 112 helpline ensuring that accident victims reach hospitals within the golden hour. Road accident victims, rah-veer (good samaritans), or any person at the accident site may dial 112 to obtain details of the nearest designated hospital and request ambulance assistance, enabling swift coordination between emergency responders, police authorities and hospitals;
  2. every eligible road accident victim on any category of road will be entitled to cashless treatment up to INR 1,50,000 (Indian Rupees one lakh fifty thousand) per victim, for a period of 7 (seven) days from the date of accident. Stabilisation treatment and police confirmation are required to be provided for up to 24 (twenty-four) hours in non-life-threatening cases and up to 48 (forty-eight) hours in life-threatening cases, on an integrated digital system;
  3. PM RAHAT is implemented through a robust, technology-driven framework amalgamating the Electronic Detailed Accident Report (eDAR) platform of MoRTH with the transaction management system of the National Health Authority, enabling seamless digital linkage from accident reporting to hospital admission, police authentication, treatment administration, claim processing, and final payment;
  4. reimbursement to hospitals will be made through the Motor Vehicle Accident Fund (MVAF). In cases where the offending vehicle is insured, payment will be drawn from contributions made by General Insurance Companies. In uninsured and hit and run cases, payment will be made through budgetary allocation by Government of India. Claims approved by the State Health Agency will be paid within 10 (ten) days, thereby providing financial certainty to hospitals and encouraging uninterrupted treatment; and
  5. grievances of road accident victims will be addressed by a grievance redressal officer nominated by the District Road Safety Committee chaired by the District Collector/District Magistrate/Deputy Commissioner thereby ensuring accountability at the district level.

Source: PIB Press Release dated February 14, 2026

 

NHAI Accepts NHs infra trust offer to acquire 2 NH assets

To ensure financial sustainability and bring in the private sectors’ advanced technologies, enhancing the quality and longevity of NH assets, NHAI vide press release dated February 16, 2026, stated that it has accepted the offer of NHs Infra Trust (NHIT) amounting to INR 6,220.90 crore (Indian Rupees six thousand two hundred and twenty point nine crore) towards asset monetisation of 2 (two) NH sections spanning over 310.35 (three hundred and ten point three five) km across 2 (two) states – Maharashtra and Andhra Pradesh. The monetised assets include 255.97 (two hundred and fifty five point nine seven) km long Amravati–Chikhali–Tarsod section of NH-53 in Maharashtra and 54.38 (fifty-four point three eight) km long Gundugolanu- Chinna – Avutapalli section of NH-16 in Andhra Pradesh.

Source: NHAI press release dated February 16, 2026

 

Asset monetisation: Government of India and Niti Aayog announce the National Monetisation Pipeline 2.0

The Government of India and Niti Aayog, on February 23, 2026, announced the launch of National Monetisation Pipeline 2.0 (“NMP 2.0”), with the goal of monetising public assets of an approximate value of INR 16.72 lakh crores (Indian Rupees sixteen lakh seventy-two thousand crore) during the next 5 (five) FYs i.e., from FYs 2025-26 to 2029-30, across 12 (twelve) sectors. The announcement of NMP 2.0 follows on the heels of the completion of National Monetisation Plan 1.0 (“NMP 1.0”), which was in effect between FYs 2021-22 to 2024-25. It was largely successful with 89% of the assets, in terms of value, being successfully monetised. NMP 2.0 is grander in scale as it targets monetisation of assets amounting to INR 16.72 lakh crore (Indian Rupees sixteen lakh seventy-two thousand crore) as compared to approximately INR 6 lakh crore (Indian Rupees six lakh crore) in NMP 1.0.

In terms of the highways, logistics, MMLP and ropeways sector, NMP 2.0 proposes to monetize assets in this sector worth INR 4,42,000 crore (Indian Rupees four lakh forty two thousand crore) which is 26% of the total value of assets proposed to be monetised under NMP 2.0. This demonstrates that the highways and logistics sector will play a critical role in driving India’s asset monetisation strategy over the next 5 (five) FYs.

For a detailed analysis, please refer to the JSA Prism of March 5, 2026.

Source: PIB Press Release dated February 23, 2026; and Report issued by Niti Aayog on NMP 2.0

 

Revamped Rajmarg Pravesh portal for transparent and faster NOC approvals

To make the process of getting permissions simpler, faster, and more transparent, in line with the Government’s commitment to improving ease of doing business, MoRTH, vide press release dated February 25, 2026, launched the upgraded Rajmarg Pravesh web portal for hassle free obtaining NOCs for fuel stations, wayside amenities, private properties, rest area complexes, connecting roads, and other such facilities along NHs. The portal can also be used by Government and private organisations to obtain permissions for laying utilities such as water pipelines, gas pipelines, optical fibre cables, electrical lines, and other services along or across NHs.

Source: PIB Press Release dated February 25, 2026

 

Introduction to artificial intelligence powered dashcam monitoring system for NH operations and management

To enhance remote tracking and road condition assessments using high-resolution imagery and video data, NHAI vide press release dated March 20, 2026, has launched a project to deploy advanced Artificial Intelligence (“AI”) powered dashcam analytics services on around 40,000 (forty thousand) km of the NH network. This initiative leverages AI and Machine Learning (“ML”) to enhance the use of high-tech, data-driven operations and maintenance for the NHs and expressways across the country. Some of the key features of the project are, inter alia:

  1. specialised dashboard cameras to be mounted on Route Patrol Vehicles (RPVs) to conduct weekly surveys on all the stretches comprehensively. Advanced AI/ML trained models will be deployed for identification of over 30 (thirty) types of defects and anomalies automatically;
  2. the major focus will be on pavement condition (including detection of potholes, rutting, and severe cracking) and on safety and encroachments (done through monitoring for illegal median openings, unauthorised signboards, and illegal parking or encroachments); and
  3. a weekly survey will be conducted during night-time in a month for performance evaluation of road signages, pavement markings, road studs and highway lighting as well as for observing and rectifying other critical maintenance issues like water stagnation, missing drainage covers, vegetation growth and poor condition of bus bays.

Source: PIB Press Release dated March 20, 2026

 

This Newsletter has been prepared by:

Ashish Suman
Partner

Vishnu Sudarsan
Partner

Kartikeya GS
Partner

Ayan Sinha
Principal Associate

Swapnil Singh
Senior Associate

Swadha Singh
Associate

 

For more details, please contact [email protected].