2 weeks ago

India Plans Blacklist for Highway Developers Using Excessive Subcontracting

The Indian government wants roads and tunnels to be built safely and properly.

It says some highway companies pass their work through too many subcontractors.

Each middle company may keep part of the money, leaving less for the actual construction.

The government plans to use GST payment records to find these arrangements.

Companies that break the rules could be banned for two or three years and publicly named.

Officials also want to judge contractors and project-report consultants by their past performance.

Nitin Gadkari said some project reports are prepared without visiting the construction site, which can cause design problems.

India is also planning many tunnel projects and wants local companies to make the machines needed to build them.

Key facts

Proposed penalty: Two- to three-year bans and public blacklisting for developers involved in illicit multi-tier subcontracting.
Detection method: GST payment trails would be used to expose subcontracting layers.
Assessment process: Contractors are being assessed on performance, and the exercise is being extended to Detailed Project Report consultants.
Tender eligibility: The ministry has proposed linking eligibility to contractor and consultant performance assessments.
Tunnel tenders: The ministry is preparing tenders worth Rs 2 lakh crore to Rs 2.5 lakh crore.
Domestic manufacturing: Gadkari said India will need to manufacture tunnel boring machines locally and cited their capital cost as a constraint.
Project reports: Gadkari said some reports are prepared without site visits, causing design flaws and contributing to accidents and deaths.

financialexpress.com · 2 weeks ago