Govt invokes catastrophic failure event clause against 2 highway developers

New Delhi, The Highways Ministry has invoked the newly introduced provision of the catastrophic failure clause against two highway developers for major structural failures on National Highways projects.

The provisions of the catastrophic event allow highway-owning agencies to bar highway developers for two years from bidding for new projects. Such highway builders also face negative ratings that will adversely impact their chances of getting future projects.

According to documents accessed by PTI, the Road Transport and Highways Ministry has notified a catastrophic event in a project comprising the four-lane Poondiankuppam-Sattanatharupam section of NH-45 (New NH-32) from km 67 to km 123 in Tamil Nadu under HAM mode.


"The bid project cost was Rs 2,120 crore, and it was awarded to M/S Poonadinkuppam Sattanathapuram Section Private Limited (Promoters-M/s Oriental) under a concession agreement. The appointed date of the project was January 20, 2022, with a scheduled completion date of January 19, 2024.

"M/s Theme Engineering Services Private Limited has been appointed as the independent engineer," the ministry's order said.

The order document further said that at approximately 0030 hours on April 6, 2026, substantial settlement of the pavement quality concrete of approximately 2 metres was observed on the main carriageway at the approach to the light vehicle underpass at km 105+220 on the Kollidam Bypass. The incident was accompanied by bulging, cracking and horizontal displacement of the reinforced earth.

In the second case, the project comprises the widening and strengthening of approximately 45 km of NH-727B from km 61.500 near Nawalpur to km 106.495 near Sikanderpur, to two -lane with paved shoulder/ four-lane with paved shoulder configuration under the engineering procurement and construction (EPC) mode in Uttar Pradesh.

The project was sanctioned for Rs 2,061 crore, and EPC work was awarded to the joint venture of VRC Constructions (India) Pvt Ltd and R & C Infra Engineers Pvt Ltd at a contract price of Rs 613 crore.

Technocrats Advisory Services Pvt Ltd had been appointed as the authority engineer for the project.

"An incident occurred on March 25, 2026, at about 1015 hours during the execution of reinforcement works for the viaduct portion of the major bridge over River Ghaghra at Chainage km 77+220.

"During the lifting and erection of the reinforcement cage for the viaduct pier, a portion of the cage collapsed and fell on workers present at the site, resulting in two fatalities and grievous injury to one person," the order document said.