This story is from November 02, 2025

Highways safety push: Govt to fine contractors for repeat NH accidents; cashless treatment scheme for victims soon

Highways safety push: Govt to fine contractors for repeat NH accidents; cashless treatment scheme for victims soon
The Ministry of Road Transport and Highways will now impose penalties on contractors if more than one accident occurs in a year on a specific stretch of National Highway built under the build-operate-transfer (BOT) model, a senior official said.Road Transport and Highways Secretary V Umashankar said the ministry has revised the BOT document to make contractors responsible for crash management and corrective measures, PTI reported.
Goodbye, Frequent FASTag Recharges! NHAI Launches Annual Pass for Rs 3,000
“If more than one accident happens on a particular stretch, say 500 metres, then the contractor will face a penalty of Rs 25 lakh. The penalty will increase to Rs 50 lakh if an accident happens next year,” Umashankar said.He added that the highways ministry has identified around 3,500 accident-prone areas across India.National Highways projects are mainly executed under three modes — BOT, hybrid annuity model (HAM), and engineering procurement and construction (EPC). The concession period for BOT projects, including maintenance, ranges from 15 to 20 years, while for HAM projects it is 15 years.For EPC projects, the defect liability period is five years for bituminous pavements and ten years for concrete pavements. Toll-operate-transfer (TOT) and InvIT projects have concession periods of 20 to 30 years, while operate-maintain-transfer (OMT) projects generally run for nine years.
Umashankar also said the government will soon launch a nationwide cashless treatment scheme for road accident victims after refining the pilot model with technical and operational learnings.Under the scheme, accident victims will be entitled to cashless treatment of up to Rs 1.5 lakh for the first seven days at designated hospitals, according to a May notification by the ministry.The initiative is aimed at reducing road accident fatalities caused by delays in medical response. A pilot for the cashless scheme was launched in Chandigarh on March 14, 2024, and later expanded to six states.
author
About the AuthorTOI Business Desk

The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.

End of Article
Follow Us On Social Media