In a significant move to enhance road safety on National Highways, the Ministry of Road Transport and Highways has announced the imposition of financial penalties on contractors involved in the Build-Operate-Transfer (BOT) model for highway construction. This decision aims to mitigate the rising number of road accidents.
Road Transport and Highways Secretary V. Umashankar revealed that strict penalties will apply if more than one accident occurs within a specific highway segment in a year. Under the revised BOT concession agreement, contractors will be penalized if more than one accident is recorded in a stretch measuring 500 meters. The initial penalty is set at Rs 25 lakh, which will escalate to Rs 50 lakh if another accident happens in the subsequent year.
Umashankar noted that the ministry has identified 3,500 accident-prone sections across the national highway network. The updated BOT framework not only includes financial penalties but also mandates comprehensive crash management practices, ensuring that corrective actions are taken for recurring accidents within any highway segment.
National Highway projects in India are conducted primarily through three methods: Build-Operate-Transfer (BOT), Hybrid Annuity Model (HAM), and Engineering Procurement and Construction (EPC). For the BOT model, the concession period generally ranges from 15 to 20 years, during which the contractor is responsible for the maintenance and safety of the road. In contrast, HAM projects have a fixed concession period of 15 years.
For EPC projects, the Defect Liability Period (DLP) is five years for bituminous surfaces and ten years for concrete pavements. Meanwhile, projects under the Toll-Operate-Transfer (TOT) and Infrastructure Investment Trust (InvIT) models have concession periods extending from 20 to 30 years, while those governed by the Operate-Maintain-Transfer (OMT) model usually last nine years.
Additionally, Umashankar announced the forthcoming implementation of a nationwide cashless treatment scheme for victims of road accidents. This initiative, which has already seen successful pilot runs, will provide cashless medical treatment for up to Rs 1.5 lakh for the first seven days in designated hospitals. The scheme is designed to address the delays in emergency medical care that often lead to fatalities.
According to the ministry’s notification from May 2024, any person injured in a road accident involving a motor vehicle will be entitled to treatment under this scheme. The pilot program began on March 14, 2024, in Chandigarh and has since expanded to six additional states for broader testing and evaluation.
Original Source: https://assamtribune.com/national/centre-to-fine-contractors-up-to-rs-50l-for-repeated-accidents-on-nh-stretches-1596604
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Publish Date: 2025-11-02 19:15:00
