The National Highways Authority of India (NHAI) has introduced a new standard operating procedure (SOP) aimed at streamlining the execution of “deposit works” undertaken on behalf of various government agencies, public sector undertakings and other sponsoring organisations. The move comes amid a growing number of requests from central and state departments seeking NHAI’s assistance in implementing road infrastructure projects that fall outside its core mandate.
According to the SOP, the objective of the new framework is to bring greater transparency, accountability and uniformity to the execution of such projects. Deposit works refer to infrastructure projects that are fully funded by the sponsoring agency, rather than being financed through the Ministry of Road Transport and Highways (MoRTH). These projects are executed by NHAI on behalf of the requesting organisation, but remain financially independent of its regular budgetary allocations.
Under the revised policy, sponsoring organisations will be required to bear 100 per cent of the project cost and deposit the funds in advance before the commencement of any work. This pre-funding mechanism is intended to ensure financial clarity and reduce execution delays. In addition, NHAI will levy a service fee ranging between 3 and 5 per cent of the civil construction cost for undertaking such projects. However, the SOP also provides flexibility, allowing the NHAI Chairman to waive this fee in specific cases depending on the nature and importance of the project.
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Officials associated with the development stated that the SOP has been designed to establish a clear and consistent approval mechanism for deposit works. The framework is expected to ensure that all such projects adhere to NHAI’s established standards of quality, safety and project management. By standardising procedures across different categories of sponsoring agencies, the authority aims to reduce procedural ambiguity and improve coordination during execution.
The introduction of this policy is also seen as a response to the increasing workload being placed on NHAI through externally funded infrastructure assignments. With multiple agencies seeking its expertise, the authority has sought to formalise operational guidelines to maintain efficiency without compromising on its primary responsibilities. The SOP is expected to facilitate faster decision-making, improve financial discipline and enhance accountability in project execution.
Overall, the new framework reflects NHAI’s attempt to balance its expanding role in infrastructure development with the need for structured governance. By clearly defining financial responsibilities, execution standards and approval processes, the authority aims to ensure that deposit works are implemented in a more systematic and transparent manner while maintaining consistency across projects nationwide.
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