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The Ministry of Road Transport and Highways (MoRTH) has tightened accountability for private contractors handling national highway projects under the BOT model. The ministry has identified nearly 3,500 accident-prone stretches and will now impose financial penalties of INR 25 lakh for more than one accident within a year, and INR 50 lakh for repeat incidents. BOT contractors must also carry out crash-management and safety improvements. Alongside, MoRTH is preparing to launch a national cashless treatment scheme for accident victims, covering up to INR 1.5 lakh for the first seven days of hospitalisation.
The Ministry of Road Transport and Highways has identified close to 3,500 stretches across national highways that are vulnerable to accidents. To address this, it has revised the terms for Build-Operate-Transfer (BOT) contracts, introducing a system of penalties on concessionaires that fail to ensure road safety on the stretches they manage. Advertisement
As per the updated contract conditions, if more than one accident occurs on the same 500-metre stretch of a BOT project within a year, the contractor will face a penalty of INR 25 lakh. If a repeat incident takes place on the same stretch in the following year, the penalty will increase to INR 50 lakh. These penalties are part of the government's effort to make concessionaires more responsible for the upkeep and safety of the roads they operate.
BOT contractors typically manage national highway projects for a period of 15 to 20 years, during which they are responsible for operations and maintenance. Under the new rules, they will also have to adopt proactive safety measures, identify risky spots, and implement corrective actions such as improving road geometry, signage, lighting, and barriers. The ministry expects this accountability framework to help reduce road crashes on frequently affected stretches.
MoRTH has also clarified that the new penalty provision applies only to projects developed under the BOT (toll) model. Other project formats such as the Hybrid Annuity Model (HAM), Engineering-Procurement-Construction (EPC), Toll-Operate-Transfer (TOT), Infrastructure Investment Trust (InvIT), and Operate-Maintain-Transfer (OMT) models will continue to have separate maintenance and safety norms, depending on their contract structures.
In a related step to improve post-accident response, the ministry is working on rolling out a cashless treatment scheme for victims of road accidents across India. The scheme will allow cashless medical treatment up to INR 1.5 lakh for the first seven days following an accident in designated hospitals. The plan, which was earlier tested in select cities and later extended to six states, will now be expanded nationwide after assessing the results of the pilot phase.
Officials said that the aim is to ensure that victims receive immediate medical help without delay, irrespective of their insurance status. The government believes that timely care and strict accountability for safety lapses can together significantly reduce fatalities and serious injuries on national highways.
Source PTI
5th Jun, 2025
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