Highway ministry allows force majeure relief for road contractors amid West Asia conflict
MoRTH said contractors can avail themselves of force majeure relief, but maintenance of tolled road stretches must continue to ensure traffic safety
The highway ministry's decision has come on the basis of an office memorandum issued by the Department of expenditure on April 29. (Representational Image)
The ministry’s decision follows an office memorandum issued by the Department of Expenditure on April 29, which said the conflict should be treated as a “war” and that contractors should be granted relief in cases where supply chain disruptions lead to project delays.
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Force majeure refers to extraordinary events or circumstances beyond human control. In this regard, the Department of Expenditure allowed government departments to extend project completion timelines by two to four months without imposing penalties.
MoRTH said contractors can avail themselves of force majeure relief, but maintenance of tolled road stretches must continue to ensure traffic safety.
“It is clarified that since tolling is continued on such stretches without any hindrance or likely substantial reduction in traffic flows, concessionaires are expected to ensure routine and regular maintenance of the work to keep the road traffic-worthy and in a safe condition as per IRC standards. Concessionaires may, however, extend the obligation of renewal layer works by up to six months without any increase in the concession period,” the ministry said in a circular dated June 5.
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Separately, on April 1, the highway ministry had issued a circular providing a cost-escalation compensation mechanism, or price adjustment, to account for a surge in fuel prices, construction material costs such as bitumen, and logistics expenses. The ministry clarified that contractors availing themselves of relief under the price-adjustment circular will not be eligible for force majeure relief.
“For avoidance of doubt, concessionaires may avail either the benefit of price adjustment beyond the terms of the contract/concession issued from time to time or the benefit of force majeure. Force majeure invocation shall be applicable from 29.04.2026 till 30.06.2026,” the ministry said.
It also clarified that there will be no extension of the concession period in BOT, TOT and InvIT projects, as user-fee collection has not been impaired.
The highway ministry's decision has come on the basis of an office memorandum issued by the Department of expenditure on April 29. (Representational Image) 
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