Highway builders seek extension of West Asia-related relief measures till December 31

The National Highways Builders Federation (NHBF) has urged the government to extend the relief measures provided to highway contractors and concessionaires for another three months beyond September 30, citing continued uncertainty in the wake of the geopolitical situation in West Asia.

NHBF has requested that the relief measures notified through the Ministry of Road Transport and Highways’ circulars dated April 1, April 17, April 25, May 18 and July 29 be extended up to December 31, 2026, or until prevailing abnormal market conditions substantially stabilise, whichever is earlier.

According to NHBF, the measures have provided support to contractors and concessionaires and facilitated continued execution of national highway projects amid extraordinary and unforeseen market conditions.

However, the federation said the circumstances that necessitated the relief measures continue to persist. It pointed to continued volatility in crude oil prices, fuel costs, transportation and logistics expenses and supply chains, resulting in financial and operational pressures for contractors and concessionaires.

NHBF warned that discontinuing the measures from September 30, while the underlying market conditions remain substantially unchanged, could create financial stress for ongoing projects, particularly those operating under constrained margins. It said this could also lead to avoidable claims, contractual disputes and project delays.

The federation has requested that any extension be issued on the same terms and conditions as the existing relief measures, without changes to their scope, eligibility or applicability.

NHBF said continuation of the measures would provide greater certainty to contractors and concessionaires, help maintain uninterrupted project execution during the period of market uncertainty, preserve the financial viability of ongoing contracts and facilitate timely completion of critical national highway projects.