Centre to fine contractors up to Rs 50L for repeated accidents on NH stretches

New Delhi, Nov 2: In a bid to reduce road accidents on National Highways, the Ministry of Road Transport and Highways has decided to impose financial penalties on contractors responsible for constructing stretches of highways under the Build-Operate-Transfer (BOT) model.

If more than one accident occurs in a year along any such stretch, the contractor will face strict penalties under the revised BOT concession agreement, Road Transport and Highways Secretary V. Umashankar said on Sunday.

He added that the revised BOT framework includes provisions for crash management and mandates corrective measures in case of recurring accidents on a particular highway segment.

“If more than one accident occurs within a particular stretch, say 500 metres, the contractor will face a penalty of Rs 25 lakh. The penalty will rise to Rs 50 lakh if another accident occurs the following year,” Umashankar stated.

He further added that the ministry has identified 3,500 accident-prone stretches across the national highway network.

National Highway projects in India are primarily implemented through three modes - Build-Operate-Transfer (BOT), Hybrid Annuity Model (HAM) and Engineering Procurement and Construction (EPC).

Under the BOT model, the concession period, including maintenance, ranges from 15 to 20 years, while for HAM projects it is 15 years. The concessionaire remains responsible for the upkeep and safety of the designated highway stretch during this period.

For EPC projects, the Defect Liability Period (DLP) is five years for bituminous pavements and ten years for concrete pavements.

Meanwhile, for Toll-Operate-Transfer (TOT) and Infrastructure Investment Trust (InvIT) projects, the concession period extends between 20 and 30 years. Projects under the Operate-Maintain-Transfer (OMT) model generally have a nine-year concession period.

Umashankar also announced that the government will soon roll out a nationwide cashless treatment scheme for road accident victims, following successful pilot runs and refinements based on technical and project feedback.

Under the scheme, accident victims will be entitled to cashless medical treatment up to Rs 1.5 lakh for the first seven days at designated hospitals, according to a notification issued by the ministry in May 2024.

The initiative aims to reduce fatalities caused by delays in emergency medical care.

“Any person who is a victim of a road accident involving a motor vehicle, on any road, shall be entitled to cashless treatment as per the provisions of this scheme,” the notification stated.

The pilot project for the scheme was launched on March 14, 2024, in Chandigarh, and later expanded to six states for broader implementation and evaluation.

PTI