NHAI imposed total Rs 2,732 Cr penalties on delayed projects, Rs 780 Cr recovered

Road Transport and Highways Minister Nitin Gadkari shared the information in a written reply to a question in the Lok Sabha on July 23.

He said the penalties were imposed on contractors or concessionaires responsible for delays in project execution, as per the terms of their contracts.

The minister’s reply also provided details on the number of ongoing highway projects across the country, the status of NH-39 in Madhya Pradesh, and the steps being taken by the government to improve project monitoring and ensure timely completion.

₹780 crore recovered from delayed projects

According to Gadkari, penalties worth around ₹2,732 crore have been imposed on contractors and concessionaires over the last three financial years for delays in National Highway projects. 

Of this, about ₹780 crore has been recovered, while the remaining amount is under the recovery process as per contractual provisions.

1,187 National Highway still under construction

Responding to the Lok Sabha question, Gadkari said 1,187 National Highway projects that began during the last 10 years are still under construction and have not yet been completed. These figures exclude projects that are under consideration for termination or foreclosure.

NH-39 project faced repeated contractor failures

The minister said three concessionaires were initially engaged for different sections of NH-39 in Madhya Pradesh. However, all three concession agreements were terminated due to persistent failure to meet contractual milestones and poor performance.

The projects were later re-awarded on the EPC model. While the Bameetha-Satna and Satna-Bela sections have been completed, the Sidhi-Singrauli section had to be re-awarded again in FY 2026-27 after another contractor failed to perform. The revised completion deadline for this section is May 8, 2028.