The National Highways Authority of India (NHAI) has initiated the final step to terminate its contract with Roadways Solutions India Infra Ltd (RSIL) for a crucial section of the massive Delhi-Mumbai Expressway project. The action comes due to the contractor's severe and persistent failure to meet construction targets, putting the entire project's revised timeline at risk.
Chronic Delays Trigger Final Warning
On Wednesday, NHAI issued an "intention to termination notice" to the Pune-based engineering firm for its work on a 35-kilometre stretch in Gujarat. This notice is the last procedural step before the formal termination of the contract. The authority cited "absolute and continued non-performance" as the reason for this drastic move.
The data reveals a shocking lack of progress. After 16 months from the appointed start date of August 31, 2024, the contractor has achieved a mere 4.6% financial progress and 4.9% physical progress against the target. According to the original 18-month timeline, the work should have been nearly 70% complete by now.
In a letter to RSIL, NHAI stated that the minimal advancement conclusively proves that finishing the Jujuwu-Gandeva section by the deadline of November 15, 2026, is "wholly impossible." The authority highlighted that despite being granted repeated indulgences and signing three separate settlement agreements, the contractor failed to demonstrate any improvement.
A Troubled History and Wider Impact
This is not the first time RSIL has faced action from NHAI. In a surprising turn of events, the authority had terminated RSIL's contract for two other stretches in March 2023, only to re-award the same packages to the company in November 2023 after it submitted the lowest bid again.
The current notice applies specifically to the 35-km package. For the two other stretches of 27 km and 25 km being built by RSIL in Gujarat, where progress is at 23% and 36% respectively, NHAI is likely to issue a cure period notice. This notice typically gives a contractor 60 days to rectify breaches.
However, for the severely delayed 35-km section, NHAI has bypassed the cure period. Citing the settlement agreements, an official stated that failure to meet milestones would lead to termination without a cure period. The current notice acts as a 15-day final warning, after which NHAI will be entitled to terminate the contract.
Project Deadline and Public Inconvenience at Stake
The combined delay on these three packages, totalling 87 km in Gujarat, is now threatening to push the completion of the entire over Rs 1 lakh crore Delhi-Mumbai Expressway project beyond its revised deadline of March 2028. Sources indicate that the dismal pace of work could cause significant further delays.
NHAI has also emphasized that the incomplete work under RSIL's three packages is creating significant public inconvenience across multiple fronts. The authority claimed it provided extended assistance but the contractor consistently failed to achieve requisite progress.
The situation underscores the challenges in executing mega-infrastructure projects in India. RSIL, which had bagged these expressway packages in Gujarat in 2021, now faces expulsion from one of the country's most prestigious highway projects due to its inability to deliver on commitments.
