Delhi-Mumbai Expressway: Only 5% Work Done Instead of 75%, Pune-Based Company Served Contract Cancellation Notice

PUNE: The ambitious 1,386-kilometer Delhi-Mumbai Expressway, one of India’s largest infrastructure projects with an estimated cost of ₹1.04 lakh crore, has suffered significant delays due to underperformance in key sections. The National Highways Authority of India (NHAI) has issued a contract cancellation notice to Pune-based Roadways Solutions India Infra Limited (RSIIL) for failing to meet construction targets on a 35-kilometer stretch in Gujarat.

Minimal Progress Raises Concerns
According to NHAI, physical and financial progress on this section was only 4.9% and 4.6%, respectively, against the planned targets. Two other stretches under RSIIL—27 kilometers and 25 kilometers—have shown 23% and 36% progress. These delays may push the project’s revised completion timeline beyond March 2028.

History of Contract Issues
RSIIL, an engineering and construction company primarily working in roads and highways, initially secured contracts in Gujarat in 2021. The NHAI had canceled two of their contracts in March 2023 due to delays but re-awarded them to RSIIL in November 2023 after the company quoted the lowest bid.

Multiple Extensions Provided
In its notice, NHAI highlighted that RSIIL had been repeatedly given opportunities and signed three separate agreements to improve performance. Despite these concessions, after 16 months past the scheduled August 31, 2024 deadline, the company achieved negligible financial progress of just 4.59%. According to the original schedule, the contractor should have completed approximately 70% of the work.

Contract Terms Violated
The authority stated that RSIIL failed to demonstrate any substantial improvement despite repeated support. The agreements clearly stipulated that failure to meet targets would allow NHAI to terminate the contract without further notice. Consequently, the contract cancellation notice has been issued.

Next Steps
RSIIL has been given a 60-day rectification period to address the deficiencies. If no progress is made, NHAI will be entitled to terminate the contract. The authority also indicated that incomplete packages under RSIIL have caused significant inconvenience to the public, and similar corrective notices may be issued for the other two stretches.

The delay in these critical sections has raised concerns over the overall completion timeline of India’s most ambitious expressway project, highlighting the challenges in execution and project management.