A consortium of major highway developers has appealed to Prime Minister Narendra Modi to intervene in resolving concerns over the implementation framework for large road projects under the public–private partnership (PPP) model, citing stringent project completion deadlines and restrictions on dispute resolution mechanisms as key challenges affecting the sector.
Industry representatives have raised issues pertaining to accelerated timelines mandated in recent PPP contracts, which they say are becoming increasingly difficult to meet due to land acquisition delays, utility shifting hurdles, and ongoing regulatory clearances. Developers argue that while ambitious deadlines are important for infrastructure delivery, unrealistic timelines tied to punitive financial consequences are threatening project viability and investor confidence.
In addition, the developers have voiced strong concerns over limitations imposed on arbitration and dispute resolution in key contract clauses. The sector players contend that curbs on arbitration including tighter timelines for filing claims and restrictions on the scope of disputes eligible for adjudication are adversely impacting legal certainty and predictability for investors. They are urging a review of these provisions to align them with global best practices, which typically afford greater leeway for contractor recourse in the event of unforeseen challenges.
The industry’s representations underscore the broader difficulties faced by developers as India scales up its road infrastructure programme, which includes expressways, economic corridors, and network expansion under flagship initiatives. Developers have emphasised the need for a balanced contractual framework that preserves accountability while providing adequate safeguards for risk management, particularly for mega-scale projects that involve complex execution environments.
Stakeholders are calling for the formation of a high-level committee or task force, chaired at the highest level, to revisit PPP contract parameters, arbitration norms, and project milestones in consultation with government ministries and agencies. They argue that such engagement would help evolve a more sustainable ecosystem for private participation in road infrastructure, attract long-term capital, and expedite on-ground progress without compromising quality or contractual fairness.
Industry leaders have also signalled their commitment to working closely with the government to address systemic bottlenecks in project delivery, while underscoring the strategic importance of robust dispute resolution mechanisms in fostering investor confidence and international participation in India’s infrastructure build-out.
The appeals come at a time when the government continues to prioritise road connectivity and logistics efficiency as key pillars of economic growth, with a number of high-profile highway and expressway projects being tendered or under construction across states.