Parliament Question: Poor Quality of Work due to Low Bids

GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS LOK SABHA UNSTARRED QUESTION NO. 3256 ANSWERED ON 12TH MARCH, 2026 POOR QUALITY OF WORK DUE TO LOW BIDS 3256. COM. SELVARAJ V: SHRI SUBBARAYAN K: Will the Minister of ROAD TRANSPORT AND HIGHWAYS सड़क परिवहन औि िाजमार्ग मंत्री be pleased to state: (a) whether there is a recent trend of road contractors quoting low bids of up to forty-eight per cent less than the estimated project cost largely due to aggressive bidding which usually has a direct bearing on the quality of work; (b) whether it is a fact that a number of complaints have been reported recently about the collapse of National Highways and flyovers under construction particularly in Kerala; and (c) if so, the details thereof and the action taken against the contractors in these cases? ANSWER THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS (SHRI NITIN JAIRAM GADKARI) (a) Government engages contractors for project works implementation through a transparent and competitive bidding process in accordance with the prescribed procurement guidelines. In certain cases, bids have been received at rates far lower than the estimated project cost put to tender, primarily due to competitive market conditions and aggressive bidding strategies adopted by the bidders. To safeguard the interests of the Government and to ensure that quality standards are not compromised, suitable provisions have been incorporated in the bidding documents including requirement of Additional PerformanceSecurity. Further, all works are executed strictly in accordance with the relevant codes/manuals prescribed. Independent Engineers/Authority Engineers and regular field inspections ensure supervision and adherence to quality standards at every stage of construction. Independent Quality Audit is also taken up in certain projects where required. Accordingly, necessary safeguards are in place to ensure that competitive bidding does not adversely impact the quality of National Highway works. (b) & (c) The details of complaints /failure since 1.01.2025 are annexed.ANNEXURE REFERRED TO IN REPLY TO PART (b) AND (C) OF LOK SABHA UNSTARRED QUESTION NO. 3256 ANSWERED ON 12TH MARCH, 2026 ASKED BY COM. SELVARAJ V AND SHRI SUBBARAYAN K REGARDING „POOR QUALITY OF WORK DUE TO LOW BIDS‟. Sl. Action taken against NH Nature of Reason(s) of No State Name of project contractor/ No. Complaint failure . concessionaire A monetary penalty of Rs. 2.8 Cr. on the Contractor along with a recommendation for debarment up to one year or until Ruts, cracks successful Ruts, and surface rectification, cracks and deformation/ whichever is later. surface Distress was Contractor has taken deformation observed up repair/ restoration Sanchor - observed at recently after works. 754 Santalpur PKG-4 several rains in June 1 Gujarat A of NH- 754A in locations on month 2025, Additionally, in view Gujarat the project severe of public safety being highway rutting at compromised, the during some Contractor has been constructio locations suspended from n during the participating in any under ongoing/future Construction tenders for a period of period one month or until full compliance with IRC/MoRTH standards and contractual provisions.VIP Reference regarding the poor “Strengthening / quality of improvement work on NH- including 6— regular particularly maintenance the stretch work from Km at Kulang 120.200 to village. The Poor Quality The rectification work 171.455 of the Hon‟ble MP of overlaying have been carried out project Two has NH- leading to by the contractor. Lane with paved highlighted 6 slippage of However, a penalty of Meghalay shoulders that the 2 (old bituminous Rs. 20,00,000/- was a configuration in tar/paveme NH- concrete for imposed on the Jowai- nt can be 44) a length of contractor for Meghalaya removed by approx. 10-15 tarnishing the image Assam Border hand, mt. found of NHAI. Section of NH - indicating 44 from Km gross 69.200 to Km negligence, 173.200 (Design poor Ch. 171.455 ) in execution, the state of and the use Meghalaya” of substandar d materials by the contractor. 1. Penalty of Rs.18.05 Lakh was imposed on 4-laning of 14.01.2026 over the Sethiyathope - Concessionaire M/s. Tamil Cholapuram Earth Inadequate Patel Infrastructure 3 36 Nadu section from km Retaining Geotechnical Ltd. (Madurai) 65.960 to Km Structures Investigation 2. Further, a Penalty 116.440 of NH- of Rs.5.00 Lakh was 36 imposed on the IE, M/s. Theme Engineering ServicesPrivate Limited. NHAI suspended the Concessionaire and its promoter M/s. Megha Engineering & Infrastructure ltd. to participate in future bidding for 01-month period or till Concessionaire proposes remedial measures including rectification of designs of slope protection works with proper geophysical/ geotechnical, studies and demonstrate that Shotcrete such incidence will thickness not repeat at other inadequate; slope protection nail spacing locations in the large; project reach Chengala- 4 66 Kerala Others anchorage whichever is later. Neeleshwaram length Further, Settlement insufficient; Agreement was drainage executed on behind wall 19.02.2026 between inadequate. NHAI and Concessionaire. As per para 3.1.2 (b) of SA-2, the Concessionaire shall be solely responsible for slope protection works and to construct and rectify the defective works at its own risk & cost. The Concessionaire/ Promoter self- restrained themselves from participating in the bids of Authority/ Implementing Agencies of MORTHtill date. Concessionaire agreed to pay 5% of current value of failed work as per Policy Circular dt.06.10.2021 of MoRTH & 16.11.2021 of NHAI. Concessionaire also agreed to comply with the recommendations of Expert Group and complete rectification works at their own cost. Show Cause Notice issued to Concessionaire on 25.07.2025. Settleme nt Agreement executed on 19.02.2026 between NHAI and Concessionaire, as per para 3.1.2 (b) of SA-2, Concessionaire shall be solely responsible for slope protection works to construct and remedy Neeleshwaram - 5 66 Kerala Others Slope failure the defective works Thaliparambha at its own risk & cost. The Concessionaire/ Promoter self- restrained themselves from participating in the bids of Authority/ Implementing Agencies of MoRTH till date. Concessionaire agreed to pay 5% of current value of failed work as per Policy Circular dt.06.10.2021 of MoRTH &16.11.2021 of NHAI. Concessionaire also agreed to comply with the recommendations of Expert Group and complete rectification works at their own cost. A Show Cause Notice dated 31.07.2024 was issued to Concessionaire. Further, another Show Cause Notice dated 07.01.2026 was issued to Substandard Concessionaire for work Azhiyur- other defaults. In 6 66 Kerala Others execution & Vengalam response to the Show poor Cause Notice, the workmanship Concessionaire submitted the reply dated 21.01.2026. Personal hearing was given to Concessionaire on 10.02.2026. Final order is to be passed. Debarment notice issued to M/s. KNR construction Ltd. for debarment upto 1 year + penalty of 5% RE wall of Current value of design failed work or 0.5% of inadequate Earth Contract value of Ramanattukara- for saturated 7 66 Kerala Retaining whole work Valancherry soils; poor Structures whichever is compaction; more. Concessionaire missing filter & IE have approached media. Delhi High Court against such action. Viaduct is being constructed with contractor'sown expense of Rs 80 Cr. Key personnel of Contractor and AE have been removed Aroor to from the project work Malfunctionin 8 66 Kerala Thuravoor Flyover and debarred for 3 g of jack Thekku years. Expert Committee's final decision not yet received. NHAI, imposed a penalty of Rs. 15.35 Lakhs for ensuring of safe construction of works and a deterrent Delay in action in the interest cross girder of the Authority and Thuravoor to 9 66 Kerala Bridges casting and public for ensuring Paravoor lapse in the safe construction execution. of the work. Two officials of Contractor and two officials of Authority Engineer have been terminated from the site. NH connectivity Substandard to ICTT at work Penalty of Rs. 30.74 966 Vallarpadam 10 Kerala Others execution & Cr was imposed on A from poor the Contractor. Kalamassery to workmanship Vallarpadam Substandard The Concessionaire work Kodugallur to has been penalized 11 66 Kerala Others execution & Edapppally with a one-year poor debarment. workmanship Penalty of Rs. 9.55 Lakh has been Kollam to Staging issue imposed on 12 66 Kerala Kdambattukona Bridges & improper Concessionaire and m supervision the Concessionaire has terminated the services of theirEngineer responsible. Deep-Seated Shear Failure The Concessionaire Earth (Rotational has been debarred for 13 66 Retaining Slide); 01 month or till Structures Bearing submission of Capacity investigation report. Failure. Construction of 4-lane from Manegaon to NH-45, from design Ch. 19.050 to design Ch. Rs. 1 Cr. penalty Staging issue Madhya 39.180 imposed to EPC 14 45 Bridges and improper Pradesh (Jabalpur Ring Contractor M/s NKC supervision Road, Pkg-2) Projects Pvt. Ltd. under Bharatmala Pariyojana in the State of Madhya Pradesh EPC Mode. *****