JSA Newsletter | Highways and Logistics | April to June 2026 Edition

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This edition of JSA Highways and Logistics Newsletter focuses on key developments undertaken in the Indian roadways and logistics sector between April – June 2026.

 

Amendment made to the Model Request for Proposal for Build Operate Transfer (Toll) projects

The Ministry of Road Transport and Highways (“MoRTH”) vide circular dated April 27, 2026, has issued a revised Model Request for Proposal (“RFP”) for Build Operate Transfer (“BOT”) (Toll) projects with the key amendment being that the RFP now expressly permits Alternative Investment Fund (“AIF”), Foreign Investment Fund (which includes pension funds) to participate in tenders issued by the National Highways Authority of India (“NHAI”) for BOT (Toll) projects either individually or in consortium with other persons and entities. Till date, these funds were permitted to only participate in tenders for Toll Operate Transfer (“TOT”) projects. As per the revised Model RFP, AIFs and Foreign Investment Funds have been given the opportunity to participate in the BOT (Toll) tenders by only demonstrating requisite financial capacity (with there being no requirement to demonstrate technical capacity) as long such bidders propose a third party Engineering, Procurement, and Construction (“EPC”) contractor with requisite bid capacity as specified in the RFP.

In terms of financial capacity, the AIF or Foreign Investment Fund must have a minimum Available Capital for Investment (“ACI”) 50% of the estimated project cost of the project being tendered based on the ACI at the close of the immediately preceding Financial Year (“FY”). ACI has been defined as the minimum investible funds (i.e. immediately available funds for investment and callable capital, net of estimated expenditure for administration and management of the fund) of an AIF or of a Foreign Investment Fund, subject to the limits of investment in a single investee entity (in the relevant jurisdiction for a Foreign Investment Fund or the maximum permissible investment limit for an AIF as per the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012) as may be amended from time to time, as applicable.

It is expected that the participation of AIFs and Foreign Investment Funds in BOT (Toll) projects will provide a boost to these projects which over the years have faced challenges in terms of participation from bidders.

Source: The amended Model RFP issued by MoRTH may be accessed here

 

Modification in eligibility and qualification requirements for Hybrid Annuity Model projects

MoRTH, vide circular dated April 29, 2026, has modified the eligibility and qualification requirements under the Model RFP for Hybrid Annuity Model (“HAM”) projects to introduce a disqualification criterion linked to ‘catastrophic failure’ of a structure or highway due to construction defects, aligning HAM projects with the qualification criteria previously introduced for EPC projects vide circulars dated December 22, 2025, and March 2, 2026. A bidder, including any consortium member, will be deemed ineligible if a catastrophic failure, as notified by MoRTH, has occurred in any project undertaken by it during the 2 (two) years preceding the bid due date. Bidders are now required to submit an undertaking, in the prescribed format, declaring the non-occurrence of any such catastrophic failure, and any false or misleading declaration may result in disqualification or debarment for up to 2 (two) years.

Source: MoRTH circular dated April 29, 2026

 

National Highways Fee (Determination of Rates and Collection) Rules, 2008

Enabling no-cash payment of user fee through Unified Payment Interface at fee plazas

MoRTH, vide gazette notification dated April 2, 2026, and office memorandum dated April 8, 2026, has substituted Rule 6(3A) of the National Highways Fee (Determination of Rates and Collection) Rules, 2008 (“NH Fee Rules, 2008”) by way of the National Highways Fee (Determination of Rates and Collection) (Third Amendment) Rules, 2026, effective April 10, 2026.

Pursuant to the amendment, where a user of a vehicle enters a fee plaza without a FASTag, or without a valid and functional FASTag, and opts to pay the user fee through the Unified Payment Interface (“UPI”), such user will pay 1.25 (one point two five) times the user fee otherwise applicable to that category of vehicle. Where the owner or driver of the vehicle does not opt to pay in this manner, the vehicle will be dealt with in accordance with Rule 14 of the NH Fee Rules, 2008. Rule 14 of the NH Fee Rules, 2008 specifies that if any driver, owner or person in charge of a mechanical vehicle does not pay or refuses to pay the fee for use of National Highway (“NH”), permanent bridge, bypass or tunnel, his or her vehicle will not be allowed to use such section of NH, permanent bridge, bypass or tunnel and in case such vehicle obstructs the normal flow of traffic, the executing authority or the concessionaire, as the case may be, may get such obstructing vehicle removed from the NH, permanent bridge, bypass or tunnel, as the case may be.

Source: Gazette Notification dated April 2, 2026 and MoRTH office memorandum dated April 8, 2026

 

Revised rate of fee for overloaded vehicles

MoRTH, vide gazette notification dated April 13, 2026, has substituted Rule 10 of the NH Fee Rules, 2008 by way of the National Highways Fee (Determination of Rates and Collection) (Fourth Amendment) Rules, 2026, effective April 15, 2026.

The amendment requires that details of any mechanical vehicle found to be loaded in excess of the permissible maximum gross vehicle weight, along with excess load details, be reported to the National Vehicle Register (“VAHAN”). Where a weight measurement device is installed at the fee plaza, an overload fee is payable at specified multiples of the base user fee depending on the extent of overloading: (a) no overload fee where the excess load is up to 10%; (b) twice the base fee where the excess load is over 10% but up to 40%; and (c) four times the base fee where the excess load exceeds 40%. Where no such weight measurement device has been installed, no overload fee will be levied and only the fee otherwise applicable to the vehicle is payable. The overload fee is payable through FASTag, UPI, or any other notified digital payment mode, and the provisions do not apply to private investment projects executed prior to the commencement of this rule unless the concessionaire expressly consents to be governed by it without demanding any compensation.

Source: Gazette notification dated April 13, 2026

 

NHAI finalises tentative list of National Highway Projects for monetisation for FY 2026–27

MoRTH, vide press release dated May 28, 2026, has finalised a tentative list of NH stretches proposed for monetisation under TOT and Infrastructure Investment Trust (“InvIT“) modes during the FY 2026–27. The list does not include assets proposed to be monetised through the Raajmarg Infra Investment Trust for FY 2026–27. The initiative forms part of the Government of India’s asset monetisation strategy, which is focused on leveraging operational NH assets to mobilise capital for further infrastructure development, promote private sector participation, and accelerate the expansion and modernisation of the NH network. The identified assets comprise 17 (seventeen) projects with a total combined length of 1,692.5 (one thousand six hundred and ninety-two point five) km, spanning 9 (nine) states including Haryana, Jharkhand, Karnataka, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Bihar, and Maharashtra. These highway assets collectively represent economic and logistics corridors with established traffic potential and robust connectivity significance.

Source: PIB Press Release dated May 28, 2026; For the list of NH stretches being considered for monetisation, refer to the following link

 

Introduction to the Cost Escalation Compensation Mechanism

To mitigate the impact of global scenario on National Highway Projects (“NHP”), MoRTH and NHAI, has introduced the Cost Escalation Compensation Mechanism (“CECM”). The main objective of CECM is to address sectoral challenges and maintain momentum in infrastructure development by ensuring financial stability and operational continuity in NHPs. In this regard the following circulars were issued:

• Pursuant to the MoRTH circular dated April 1, 2026 on ‘CECM for NHPs due to surge in fuel, construction material prices and logistics cost’ (“MoRTH Circular”), NHAI, vide, circular dated April 8, 2026, has acknowledged the announcement regarding the implementation of a set of measures to address the impact of the prevailing global economic scenario and the consequent rise in prices of fuel, construction materials, and related logistics on NHPs. Some of the key provisions of the MoRTH circular are as follows:
• these measures are applicable for a period of 3 (three) months, from April 1, 2026 to June 30, 2026, or until further review based on the global economic situation;
• the payment schedules in the contracts for EPC projects and HAM projects have been relaxed to enable monthly payments to contractors and concessionaires for work executed in compliance with prescribed quality standards and specifications;
• price adjustment mechanism under EPC contracts has been modified to reflect prevailing market conditions and the wholesale price index for key components such as construction machinery, ordinary portland cement, mild steel, and other commodities is to be taken for 1 (one) month prior to the relevant Interim Payment Certificate (“IPC“) month, in place of 3 (three) months prior to the relevant IPC month; and
• price adjustment payments under EPC contracts are to be released along with monthly payments, and in HAM contracts, price escalation calculated using the price index multiple can also be released on a monthly basis, thereby improving liquidity and cash flow for the contractors and concessionaires involved in the construction and maintenance of NHPs.
• Subsequently, MoRTH, vide circular dated April 17, 2026, has proposed to pay, as a measure of relief, price adjustment for abnormal increase in the prices of bitumen in respect of short-term maintenance contracts, item rate and EPC contracts of less than 18 (eighteen) months duration, where no price adjustment mechanism has been provided. For the surge in bitumen prices, price adjustment is proposed for the period from April 1, 2026 to June 30, 2026, for such contracts having bid due date before April 2026, according to a prescribed formula specified in the circular. The official retail price applicable on bitumen, as on the first day of the month, 1 (one) month prior to the IPC month, is to be considered for price adjustment, replacing the earlier 3 (three) month reference period.
• Further, NHAI has issued a circular dated May 16, 2026, circulating a directive from MoRTH dated April 24, 2026, that introduces a CECM for NHPs executed under EPC, HAM, and performance based maintenance contract modes, in response to the significant increase in bitumen prices. The mechanism is applicable to construction and maintenance works undertaken during the period from April 1, 2026 to June 30, 2026, for projects with a bid due date on or before March 31, 2026, where a price escalation provision already exists in the relevant contract or concession agreement. An illustrative calculation of price variation for both EPC and HAM projects are annexed to the circular.

Sources: MoRTH circular dated April 1, 2026; NHAI Policy Circular dated April 8, 2026; MoRTH circular dated April 17, 2026; MoRTH circular dated April 24, 2026 and NHAI Policy Circular dated May 16, 2026

 

Force Majeure Clause for NH works

The Department of Expenditure (“DoE”), vide office memorandum dated April 29, 2026, had clarified that the ongoing West Asia situation is to be treated as war for the purposes of invoking the Force Majeure Clause (“FMC”) under applicable procurement manuals, and that procuring entities may accordingly invoke force majeure in relation to affected contracts. Thereafter, MoRTH, vide circular dated June 5, 2026, which was subsequently adopted by NHAI vide policy circular dated June 13, 2026, clarified that concessionaires under BOT, TOT and InvIT works may avail relaxations under the FMC vide the office memorandum dated April 29, 2026. This is subject to an obligation of the concessionaires to continue routine and regular maintenance to keep the road traffic-worthy. The MoRTH circular further clarifies that the concessionaires may extend renewal layer works for up to 6 (six) months without any increase in the concession period.

For EPC, HAM, performance-based maintenance contract and other maintenance contracts, the FMC relaxation will not apply where the concessionaire is availing the price adjustment relaxation issued vide circulars dated April 1, 2026, April 17, 2026 and April 25, 2026. Accordingly, concessionaires must elect between the benefit of price adjustment or the benefit of force majeure. Finally, the MoRTH circular clarifies that invocation of FMC applies from April 29, 2026 until June 30, 2026, and will not result in any increase to the concession period for BOT, TOT or InvIT contracts, as user fee collection remains unaffected.

Source: DoE Office Memorandum dated April 29, 2026, MoRTH circular dated June 5, 2026 and NHAI Policy Circular dated June 13, 2026

 

Clarification on impact of ‘Change in Law’ on the activity of construction of road under HAM projects

NHAI, vide policy circular dated May 8, 2026, has issued clarifications for uniform computation of Change in Law (“CIL”) compensation payable to concessionaires under HAM projects on account of the increase in the Goods and Services Tax (“GST”) rate on road construction services from 12% to 18%, effective July 18, 2022, pursuant to Notification No. 03/2022-Central Tax (Rate) issued by the Central Board of Indirect Taxes and Customs (“CBIC”). The circular provides certain clarifications and sets out project-specific treatment based on the bid due date:

• this event of change in rate of GST will be covered under CIL only for those projects where the definition of CILin the concession agreement specifically covers the event of any change in rates of any taxes that have a direct effect on the project;
• for projects with a bid due date on or before June 30, 2017, for both scenarios i.e., work completed on or before July 17, 2022 as well as work completed on or after July 18, 2022, the templates for computation set out in Annexure II of the policy circular will be applicable;
• for projects with a bid due date between July 1, 2017 and October 13, 2017, the bids were invited inclusive of GST and both construction support and annuities were taxable, hence, the concessionaire was expected to consider GST @ 12% in project cost while preparing the bids. In this scenario, if the invoice is raised (both in case of either construction support or annuity) on or after July 18, 2022, the GST compensation under CIL due to change in rate of tax from 12% to 18% will be calculated as under:

Assumptive balance payment plus escalation due on or after July 18, 2022	INR 100
GST applicable before July 18, 2022	12%
Derived balance works value excluding GST	INR 100/1.12 = INR 89.29
GST applicable from July 18, 2022 @ 18% on balance payment value excluding GST	INR 89.29 X 18% = INR 16.07
Revised Amount including GST	INR 89.29 + INR 16.07 = INR 105.36
Net Impact (in percentage terms)	5.36%

• The circular clarifies that where the work completed and date of raising of tax invoice including milestone, annuity invoice, O&M invoice etc. is before July 18, 2022 and payment is made on or after July 18, 2022, no GST compensation under CIL will be paid;
• for projects with a bid due date between October 14, 2017 and June 16, 2021, no additional compensation is payable for invoices raised on or before July 17, 2022, as construction cost had been quoted inclusive of GST at 12%. For invoices raised on or after July 18, 2022, NHAI will compensate concessionaires at 5.36% towards the GST rate differential on construction cost. Compensation for the annuity portion, which became taxable retrospectively from July 1, 2017 pursuant to CBIC Circular No. 150/06/2021-GST, will be computed in accordance with Annexure-IV of the circular; and
• for projects with a bid due date on or after June 17, 2021, GST will be payable at applicable rates, with the revised rate of 18% applying to invoices raised on or after July 18, 2022.
• The clarifications also confirm that GST compensation claims remain subject to the anti-profiteering provisions under the Central GST Act, 2017, and are to be processed in accordance with the concessionaire’s approved financial model.

Source: NHAI Policy Circular dated May 8, 2026

 

Streamlining of processing of applications for grant of access permission and right of way permissions through revamped Rajmarg Pravesh Portal

MoRTH, vide office memorandum dated April 9, 2026, circulated by NHAI vide policy circular dated April 13, 2026, has streamlined the processing of applications for grant of access permission and Right of Way (“RoW”) permissions for accommodation of public and industrial utilities under the Control of National Highways (Land and Traffic) Act, 2002. The streamlined process is to be implemented through the revamped Rajmarg Pravesh Portal (“RP Portal”), launched on February 25, 2026. The RP Portal is a fully digital and paperless platform. All new applications, including site inspection reports, must be submitted and processed exclusively through the RP Portal or its mobile application, and physical submission of applications, licence deeds, or bank guarantees will no longer be accepted; only e-bank guarantees are permitted. Applications received by an authority lacking jurisdiction must be promptly transferred to the appropriate field officer or nodal officer. The RP Portal is configured to incorporate special timeline of 7 (seven) days for disposal of applications relating to BharatNet projects.

MoRTH has since issued an office memorandum dated June 12, 2026, in continuation of its April 9, 2026 advisory, providing further instructions on the streamlining of applications for access permission and RoW permissions to the RP Portal. The RP Portal has been configured to facilitate the migration and onboarding of applications that were submitted through the erstwhile No Objection Certificate (“NOC”) portal prior to the RP Portal’s launch on February 25, 2026. As per the office memorandum of June 12, 2026, with effect from June 15, 2026, no application relating to access permission or RoW permission is to be processed either through the earlier version of the NOC portal or through offline mode, and all pending legacy applications, whether submitted online through the old NOC portal or offline, are required to be mandatorily migrated to the RP Portal. Applicants may fetch their old applications on the revamped portal using their existing application number; where the system is unable to fetch an application or the application number is unavailable, the applicant must follow the prescribed procedure for onboarding offline applications. Upon onboarding, the status of the application as existing on the old portal is to be reinstated on the RP Portal after updating any missing information. Following onboarding, all remaining activities are to be conducted exclusively through the RP Portal, including:

• verification of documents;
• scheduling and conduct of joint inspections;
• issuance of provisional NOC;
• extension of validity of provisional NOC already issued;
• execution of licence deed;
• issuance of final NOC; and
• subsequent renewal of licence deed/ NOC.

Source: MoRTH Office Memorandum dated April 9, 2026; and NHAI Policy Circular dated April 13, 2026

 

Steps taken to validate vehicle registration numbers for strengthening data accuracy across the tolling ecosystem

NHAI, vide press release dated April 15, 2026, has directed all FASTag issuer banks to undertake immediate validation of Vehicle Registration Numbers (“VRNs”) linked with FASTags. With the aim to enhance the accuracy and reliability of data in the Electronic Toll Collection (“ETC”) system. The move follows complaints regarding instances where the VRN captured by FASTag readers does not match the actual registration number displayed on the vehicle number plate. These discrepancies have the potential to undermine enforcement mechanisms and may lead to evasion of Government revenue, besides attracting penal provisions under the Motor Vehicles Act, 1988. NHAI has emphasised that ensuring the correctness of VRN mapping with FASTag is of critical importance, particularly in view of upcoming technology driven initiatives such as Multi-Lane Free Flow (“MLFF“) tolling, under which enforcement actions including the issuance of Electronic Notice (“E-Notice“) to non-compliant vehicles are expected to depend significantly on accurate and verified vehicle identification data. Accordingly, all FASTag issuer banks have been directed to undertake urgent verification of FASTags issued by them and to blacklist those FASTags found to be linked with incorrect or invalid VRNs.

Source: PIB Press Release dated April 15, 2026

 

Launch of India’s first MLFF barrier-less tolling system in Gujarat

MoRTH, through a press release dated May 1, 2026, announced the launch of India’s first MLFF barrier-less tolling system at the Chorayasi toll plaza on the Surat – Bharuch section of NH-48 in Gujarat. The MLFF system enables seamless toll collection without requiring vehicles to stop, utilising advanced technologies such as Automatic Number Plate Recognition (“ANPR“) and FASTag.

Source: PIB Press Release dated May 1, 2026

 

De-congestion of NHs in urban areas

MoRTH, vide circular dated May 29, 2026, has notified a policy for de-congestion of NHs in and around urban areas through access-controlled ring roads and bypasses. Some of the key features of the policy are as follows:

• all urban de-congestion projects are to be developed as fully access-controlled corridors of a minimum 4 (four) lane configuration with closed tolling, integrated with the notified master plan of the relevant city or town, with interchanges spaced at intervals of not less than 5 (five) kms;
• a development control zone of 15 (fifteen) metres on either side of the bypass or ring road is to be notified as a green zone, beyond which State Governments may plan a regulated development zone extending up to 2 (two) kms for regulated development;
• the State Government participation any such decongestion projects will be through 1 (one) of the 4 (four) financing models: (a) cost-sharing in land acquisition; (b) cost-sharing coupled with reimbursement of the State component of GST and mineral royalties; (c) contribution of land through land pooling; or (d) value capture financing;
• State Governments are also required to undertake mobility master planning, including development of mass rapid transit systems, and to sign a memorandum of understanding with MoRTH prior to project appraisal, with representatives of the Ministry of Housing and Urban Affairs to be included in project appraisal committees.

Source: MoRTH Circular dated May 29, 2026

 

Cabinet Committee on Economic Affairs approves various projects

During the period between April – June 2026, the Cabinet Committee on Economic Affairs, Government of India has approved several road projects increase average travel speeds, reduce travel time, and improve overall road safety, fuel efficiency, and vehicle operating costs, thereby enhancing regional mobility and socio-economic development. Additionally, the projects will result in substantial reductions in fuel consumption, carbon emissions, and vehicle operating costs. These projects which have been approved have been set out below:

• Upgradation of the 125.01 (one hundred and twenty-five point zero one) km Hiwarkhedi-Roshni-Ashapur-Rudhy stretch to 2 (two) lane with paved shoulder and widening the 108.643 (one hundred and eight point six four three) km Deshgaon-Julwaniya stretch of NH-347B to 4 (four) lanes, totaling 233.653 (two hundred and thirty-three point six five three) km, at INR 4,415.60 crore (Indian Rupees four thousand four hundred and fifteen point zero six crore) under HAM. It addresses geometric deficiencies and congestion across Betul, Khandwa, Khargone, and Barwani districts, including a 16.20 (sixteen point two) km Khargone bypass, and is expected to improve travel speed, safety, and connectivity to 6 (six) PM Gati-Shakti economic nodes.

Source: PIB Press Release dated June 3, 2026

• Upgradation and construction of the 143.529 (one hundred and forty-three point five two nine) km Khagaria-Purnea section of NH-31 and NH-231 to a 4 (four) lane stretch at a cost of INR 3,936.05 crore (Indian Rupees three thousand nine hundred and thirty-six point zero five) on Build-Operate-Transfer (“BOT”) (Toll) mode. The project will include a 6.729 (six point seven two nine) km Purnea bypass, with the aim to cut travel time to about two hours, and will connect 5 (five) PM Gati-Shakti economic nodes and 11 (eleven) logistic nodes across Khagaria, Bhagalpur, Katihar, and Purnia districts.

Source: PIB Press Release dated June 3, 2026

• Upgradation and widening of the Armoor-Jagtial-Mancherial section of NH-63 (HAM) and the Jagtial-Karimnagar section of NH-563 (BOT Toll) to 4 lane stretchs together spanning 190.76 (one hundred and ninety point seven six) km across three work packages at a combined cost of INR 7,597.16 crore (Indian Rupees seven thousand five hundred and ninety-seven point one six crore). The project addresses congestion in Nizamabad, Jagtial, Mancherial, and Karimnagar districts, targets a 100 (one hundred) km/hour design speed, and is expected to cut travel time by up to 1 hour 30 minutes between Armoor and Mancherial.

Source: PIB Press Release dated June 3, 2026

• Construction of the 160.18 (one hundred and sixty point one eight) km greenfield coastal highway from Rameshwar to Paradeep in 2 (two) packages, at a combined cost of INR 8,300.79 crore (Indian Rupees eight thousand three hundred point seven nine crore) under HAM. It comprises a 4 (four) lane stretch from Rameshwar to Konark and a 2 (two) lane paved-shoulder stretch from Konark to Paradeep, passing through Khurda, Puri, Kendrapada, and Jagatsinghpur districts, and is expected to reduce travel time by about 2 hours 30 minutes while connecting 9 (nine) economic and 5 (five) logistic nodes.

Source: PIB Press Release dated June 3, 2026

 

Delegation of powers regarding grant of relief to concessionaires on account of deferment of annual user fee revision

NHAI has issued a circular dated June 5, 2026, delegating powers for the grant of relief to concessionaires affected by the deferment of the annual user fee revision during the period between April 1, 2024 and June 2, 2024. The deferment arose on account of directions issued during the enforcement of the model code of conduct by the Election Commission of India. MoRTH had previously issued circular dated December 19, 2025, establishing a mechanism for compensation of revenue loss to concessionaires arising from the said deferment. The circular dated June 5, 2026 specifies that relief must be granted by way of extension of the concession period equivalent to the verified revenue loss, rather than any direct financial compensation. To ensure uniformity and expeditious disposal, the competent authority has approved that the concerned regional officer is to be the competent authority for approval of such relief, subject to the following conditions:

• the proposal is to strictly pertain only to deferment of the annual user fee revision arising due to directions issued in connection with the enforcement of the model code of conduct by the Election Commission of India;
• the calculation of revenue loss is to be duly verified and certified by the independent engineer and the project director;
• traffic and revenue data is to be reconciled with toll management system data and corroborated, wherever applicable, with Indian Highways Management Company Limited/Acquiring Bank data; and
• relief is to be granted only in the form of extension of the concession period for contracts still live, and in terms of revenue for contracts whose concession period has already been completed.

Source: NHAI Policy Circular dated June 5, 2026

 

NHAI to transit towards predictive asset management for strengthening operations and maintenance of NH

Through press release dated June 16, 2026, it has been announced that NHAI has undertaken a significant shift in NH operations and maintenance by transitioning from conventional maintenance practices to a predictive asset management framework. This transition is anchored on 3 (three) strategic pillars. The first pillar involves large-scale asset condition monitoring, under which NHAI has deployed Network Survey Vehicles (“NSVs“) across the NH network to collect pavement condition data such as roughness, rutting, cracking, and structural distress. In addition, drone analytics monitoring systems will be used to create digital inventories of NH assets, monitor structures, and identify encroachments, while Falling Weight Deflectometer (“FWD“) testing will assess the structural health of pavements and detect weakening sections before visible failures emerge. NHAI has also initiated the rollout of artificial intelligence powered Dashcam Analytics Services across operational NH sections, enabling automated detection of shortcomings ranging from potholes and damaged crash barriers to faulty lighting and drainage issues. The second pillar focuses on the creation of a centralised asset intelligence ecosystem, wherein data generated through NSVs, drones, dashcams, and FWD surveys is to be integrated into a single ecosystem, creating one unified source of asset condition data across the NH network. The third pillar pertains to predictive monitoring and risk-based decision-making, whereby NHAI will combine historical condition data, inspection records, and ongoing asset monitoring to identify trends early, prioritise vulnerable stretches, and intervene before shortcomings become critical. These pillars are underpinned by proactive intervention and performance management, enabled through standardised maintenance manuals, improved maintenance contracts, and robust ecosystem support. Through the integration of advanced monitoring technologies, artificial intelligence, data analytics, and performance-driven maintenance systems, NHAI aims to enhance NH longevity, optimise maintenance expenditure, and deliver a world-class travel experience to NH users across the country.

Source: NHAI Press Release dated June 16, 2026

 

NHAI successfully launches Rajasthan’s first MLFF tolling system at Daulatpura toll plaza on the Delhi-Jaipur Section of NH-48

NHAI has successfully launched Rajasthan’s first MLFF based tolling system at the Daulatpura toll plaza on the Delhi-Jaipur section of NH-48, as announced on June 19, 2026. The MLFF framework introduces barrier-less tolling with minimal human intervention, enabling vehicles to pass through toll locations without stopping, thereby ensuring seamless traffic flow. The system integrates ANPR technology with FASTag-based ETC to facilitate automated user fee collection. Following this launch, NHAI is also planning to transition toll plazas at Shahjahanpur and Manoharpur to the MLFF system, making commuting on the busy Delhi-Jaipur section seamless and barrier-free. Earlier, NHAI had successfully launched MLFF-based tolling at the Chorayasi Toll Plaza on the Surat–Bharuch section of NH-48 in Gujarat and at the Mundka Bakkarwala toll plaza on the Urban Extension Road-II in Delhi. NH users are required to maintain sufficient balance in their FASTag accounts for a seamless MLFF experience. In cases of insufficient FASTag balance or an invalid or non-functional FASTag, users are issued an E-Notice for non-payment of user fee and are required to pay the normal user fee within 72 (seventy-two) hours of receipt of the E-Notice. In the event of non-compliance after 72 (seventy-two) hours, the user fee is to be charged at twice the normal rate applicable to the relevant vehicle category. E-Notices can be accessed and paid through the designated portal, and users may also raise grievances within 72 (seventy-two) hours of issuance. Non-payment of E-Notices may result in blacklisting of FASTag and restriction of other vehicle-related services through the VAHAN platform.

Source: NHAI Press Release dated June 19, 2026

 

NHAI directs development of vehicle repair and puncture service facilities at wayside amenities along NHs and expressways

MoRTH, through the press release dated June 22, 2026, has announced that National Highways Logistics Management Limited (“NHLML“), a wholly owned subsidiary of NHAI, has directed its field offices to advise Wayside Amenities (“WSAs“) lessees to prioritise the establishment of vehicle repair shops and puncture repair facilities. The initiative is aimed at enhancing ease of commuting, reducing vehicle downtime, improving road safety, and ensuring prompt assistance to commuters and freight operators travelling on NH corridors. It has been observed that a larger number of vehicle and puncture repair services are required on several NHs and expressways to enable highway users to avail timely mechanical assistance during breakdowns and emergencies, thereby avoiding inconvenience, delays, and potential safety concerns. NHLML is developing a network of modern WSAs on a long-term lease basis under the public private partnership model. Under the existing lease agreements executed with concessionaires and lessees, a range of permissible facilities can be developed in addition to the mandatory amenities prescribed for each WSA, and vehicle repair shops and puncture repair facilities are among the approved permissible facilities under the contractual framework. These WSAs are envisioned as integrated service hubs providing essential amenities to commuters and commercial vehicle operators, complementing the broader objective of creating world-class NH infrastructure and delivering seamless mobility services. The initiative underlines NHAI’s commitment to developing safe and user-centric NH corridors that support economic growth while meeting the evolving needs of commuters and logistics operators across the country.

Source: PIB Press Release dated June 22, 2026

 

Toll committee review before relocation of user fee plaza in the construction phase

Under Rule 8 (1) of the NH Fee Rules, 2008 the executing authority or the concessionaire is required to establish a fee plaza beyond a distance of 10 (ten) kilometres from a municipal or local town area limits with the exception being that the executing authority may, for reasons to be recorded in writing, locate or allow the concessionaire to locate a fee plaza within a distance of 10 (ten) kilometres of municipal or local town area limits, but in no case within 5 (five) kilometres of municipal or local town area limits. Under Rule 8 (2) of the NH Fee Rules, 2008, the general rule is that any other fee plaza on the same section of NH and in the same direction will not be established within a distance of 60 (sixty) kilometres with the exception being that if executing authority deems necessary, it may for reasons to be recorded in writing, establish or allow the concessionaire to establish another fee plaza within a distance of 60 (sixty) kilometres.

In this regard, MoRTH, vide circular dated June 24, 2026, has directed that all proposals seeking relaxation under Rule 8(1) or Rule 8(2) of the NH Fee Rules, 2008, must be placed before the Toll Committee constituted vide MoRTH order dated December 10, 2025, for its deliberation and recommendation. This requirement applies to proposals involving relocation of fee plazas through a ‘Change of Scope’ or for any other reason. Such proposals must be considered by the Toll Committee before approval by the executing authority and prior to the commencement of construction activities.

The circular notes that proposals for publication of user fee notifications are often received only after the fee plaza has already been constructed, leaving little scope to relocate a non-compliant fee plaza and creating a fait accompli situation. The Toll Committee, chaired by Member (Commercial Operation), NHAI, reviews relaxation proposals concerning the minimum distance of a fee plaza from adjoining fee plazas or municipal limits, and other relaxations under the NH Fee Rules, 2008, before such proposals are forwarded for approval and gazette publication.

Source: MoRTH Circular dated June 24, 2026

 

Development of Indian Bridge Management System for collection of inventory and condition survey data of all bridges on NHs

MoRTH, vide circular dated June 25, 2026, has directed the roll-out of the Indian Bridge Management System (“IBMS”). The IBMS is a mobile-based application for collection of inventory and condition survey data for all bridges and structures with a span exceeding 6 (six) metres on NHs. It comprises modules for inventory, condition surveys, computation of the bridge health index, and prioritisation and ranking of bridges for maintenance and rehabilitation.

The concerned field offices are required to undertake data collection using the services of the authority engineer, independent engineer, supervision consultant, or DPR consultant associated with the project. Where such personnel are unavailable, alternative arrangements, including engagement of the EPC contractor or a dedicated bridge engineer, must be made. Concerned executive engineers, project directors, and regional officers are required to verify a prescribed minimum percentage of the uploaded data, and regional officers must ensure that data collection for all bridges under their jurisdiction is completed by September 30, 2026.

Source: MoRTH Circular dated June 25, 2026

 

This Newsletter has been prepared by:

Ashish Suman Partner	Vishnu Sudarsan Partner	Kartikeya GS Partner
Ayan Sinha Principal Associate	Swapnil Singh Senior Associate	Swadha Singh Associate

 

For more details, please contact km@jsalaw.com.