Highway Contractors Face Heavy Fines for Repeat Accidents
The Indian government will impose penalties up to ₹50 lakh on highway contractors for repeat accidents on National Highways built under the BOT model, while also preparing to launch a nationwide cashless treatment scheme for accident victims.
Key Takeaways
- Contractors face ₹25 lakh penalty for more than one accident on 500m BOT stretches
- Penalty increases to ₹50 lakh for subsequent accidents
- 3,500 accident-prone areas identified nationwide
- Cashless treatment up to ₹1.5 lakh for accident victims’ first 7 days
Strict Penalty Structure for Highway Safety
Road Transport and Highways Secretary V Umashankar announced that the ministry has revised BOT documents to make contractors directly responsible for crash management and corrective measures.
“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.
The highways ministry has identified approximately 3,500 accident-prone areas across India where these measures will be implemented.
Highway Project Models Explained
National Highways projects operate under three primary models:
- BOT (Build-Operate-Transfer): 15-20 year concession period including maintenance
- HAM (Hybrid Annuity Model): 15-year concession period
- EPC (Engineering Procurement and Construction): 5-year defect liability for bituminous pavements, 10 years for concrete
Other models like TOT and InvIT projects have 20-30 year concession periods, while OMT projects typically run for nine years.
Cashless Treatment Scheme for Accident Victims
The government will soon launch a nationwide cashless treatment initiative for road accident victims, building on technical and operational learnings from the pilot phase.
Under the scheme, accident victims will receive cashless treatment up to ₹1.5 lakh for the first seven days at designated hospitals, as per a May ministry notification.
This initiative aims to reduce road accident fatalities caused by delays in medical response. The pilot program was launched in Chandigarh on March 14, 2024, and has since expanded to six states.
