Road tenders in India: NHAI, highway, PWD and PMGSY tenders explained

Road tenders are the biggest single slice of public works in India, from a 2 km village road to a 100 km expressway package. This guide explains who issues road tenders, how NHAI tenders and other highway tenders are structured (EPC, HAM, BOT and item rate), where PWD road tenders and PMGSY works are published, what eligibility usually looks like, and what you owe after completion.

Who issues road tenders in India

NHAI

The National Highways Authority of India (NHAI) develops and maintains national highways for the Ministry of Road Transport and Highways (MoRTH). It tenders new highways and expressways, widening, bridges and flyovers, toll plaza work, highway maintenance, and consultancy such as independent engineers. You can browse live NHAI tenders on GovtTenderHub.

MoRTH and NHIDCL

MoRTH builds national highways through several executing agencies: NHAI, NHIDCL, state PWDs and the Border Roads Organisation (BRO).

NHIDCL (National Highways and Infrastructure Development Corporation) is a public sector company under MoRTH. It works mainly in the North East, Jammu and Kashmir, Ladakh, Uttarakhand and the Andaman and Nicobar Islands, including border-area roads. Its tenders range from big EPC highway packages to short-term maintenance and street lighting.

State PWDs and road corporations

Each state's Public Works Department builds and maintains state highways, major district roads and other roads. Many states also have a road development corporation, and the NH wing of the state PWD carries out national highway work given to it by MoRTH. See PWD tenders on GovtTenderHub.

PMGSY rural roads

Under the Pradhan Mantri Gram Sadak Yojana (PMGSY), state rural roads development agencies tender roads to connect villages. The Cabinet approved PMGSY-IV on 11 September 2024 for 2024-25 to 2028-29: 62,500 km of roads to connect 25,000 unconnected habitations, with an outlay of ₹70,125 crore. It covers habitations of 500 or more people in the plains, 250 or more in the North East, hill states and special category areas, and 100 or more in districts affected by left-wing extremism.

Cities and other departments

Municipal corporations, development authorities, CPWD, Military Engineer Services and the BRO also tender roads, internal roads and road repairs.

Contract types in road tenders: EPC, HAM, BOT and item rate

EPC (engineering, procurement and construction)

You design and build the road for a fixed lump-sum price, paid in stages, and maintain it through the defect liability period. Most NHAI, MoRTH and NHIDCL packages that mid-sized contractors can win are EPC.

HAM (hybrid annuity model)

Approved for highways on 27 January 2016. The government pays 40% of the project cost as construction support during construction, and the other 60% as annuities with interest over the operation period, generally 15 years. The government collects the tolls, so you carry no traffic risk, but you do arrange part of the finance.

BOT (build-operate-transfer, toll)

You finance and build the road and recover your money from tolls over a concession of 15 to 20 years, maintaining it throughout. BOT and HAM are public private partnerships; our PPP model guide explains them, along with TOT and OMT.

Item-rate and percentage-rate contracts

Most state, district, city and PMGSY roads are ordinary works contracts. In an item-rate tender you quote a rate for each item in the BOQ. In a percentage-rate tender you quote one percentage above or below the estimated cost, which is built from the department's schedule of rates. CPWD, for example, checks road and bridge rates against MoRTH's Standard Data Book. Our schedule of rates guide explains "above SOR" and "below SOR".

Maintenance contracts

Highways that are out of their defect liability period are kept up under performance-based maintenance contracts (about 5 to 7 years) or short-term maintenance contracts (1 to 2 years). These are smaller, steady jobs and a good entry point for highway work.

Where road tenders are published

Points to know:

• NHAI's e-tendering portal is managed by NIC. Enrolment is free and you need a Class 3 digital signature with signing and encryption. Amendments and clarifications go up on both the NHAI website and the portal.
• Some NHAI RFPs also ask for details on BIMS (bims.gov.in), such as your projects, net worth and turnover. Read the RFP's submission clause.
• Each NIC portal needs its own enrolment. Enrolling on etenders.gov.in doesn't let you bid on your state's portal. Our NIC bidder registration guide shows the steps.
• Consultants for MoRTH work register the firm and key staff on MoRTH's INFRACON portal before submitting a proposal.

GovtTenderHub reads etenders.gov.in, eprocure.gov.in, the PMGSY portal and the state NIC portals, so you can search road tenders across states in one place: civil works tenders for all works, PMGSY tenders for rural roads.

Eligibility for road tenders

Every tender sets its own figures. These are the tests you will meet most often.

Similar works and turnover

Road tenders ask for completed similar works, such as road or highway works of a stated length or value, within a stated period. Central works often follow the DoE works manual: three works of 40%, two of 50% or one of 80% of the estimated cost in the last seven years. They also ask for an average annual turnover over recent years. See our eligibility criteria guide.

Bid capacity

Works tenders check you aren't over-committed with the formula A × M × N − B. MoRTH's highway EPC RFP uses A × N × 2.5 − B + C, where C is any early-completion bonus you earned. Your statement of existing works must be countersigned by each client's engineer (not below Executive Engineer) and verified by your statutory auditor. Leaving a job out can get you debarred for one year. Our bid capacity guide has a worked example.

Joint ventures

MoRTH's EPC RFP allows a JV of at most 2 members, each holding at least 26%. The lead member must meet at least 60% of the bid capacity requirement and the other at least 20%.

Registration and other papers

• State PWDs usually want you registered in their contractor class for the value of the work.
• Debarment carries across agencies. NHIDCL's bid documents exclude firms barred by MoRTH, NHAI, NHIDCL, any state PWD or the BRO.
• Bid validity in MoRTH highway EPC tenders is 120 days from the bid due date.
• You will also need an EMD or bid security, and a performance security if you win; see performance security in tenders.

DLP and maintenance on road contracts

Road contracts keep you responsible for years after completion.

Under MoRTH's EPC agreement you must fix a notified defect within 15 days. If you don't, the authority gets it fixed and recovers the cost plus 20%, and the DLP runs on until the defect is put right. Our defect liability period guide covers security release.

PMGSY builds maintenance into the contract. Every road work comes with an initial five-year maintenance contract with the same contractor, under the standard bidding document. States budget the maintenance money and place it with the state rural roads agency in a separate account. Maintenance is tracked on the e-MARG system for five years from completion, matching the DLP.

Tips for smaller road contractors

1. Start where you qualify. PMGSY packages, PWD district roads, city roads and highway maintenance contracts have lower entry bars than NHAI EPC packages.
2. Keep every completion certificate with the length, value and pavement type. These prove your similar work for the next tender.
3. Track your bid capacity. List every running job and its balance before each bid.
4. Watch two or three portals. A Uttar Pradesh contractor might need the state portal, PMGSY and etenders.gov.in. A daily tender alert for "road" in your districts saves checking each one.

Common questions

How do I apply for NHAI tenders?

Enrol on etenders.gov.in with a Class 3 digital signature (enrolment is free), download the RFP, and submit your technical and financial bids online before the deadline. Some RFPs also need details on the BIMS portal. Check the eligibility, bid capacity and bid security clauses first.

What is the difference between EPC and HAM in road projects?

In EPC, the government pays the whole construction cost in stages and you maintain the road only through the defect liability period. In HAM, the government pays 40% during construction and 60% as annuities over about 15 years, and you maintain the road for that whole time.

Where can I find PWD road tenders?

On your state's e-procurement portal, under the PWD or the roads department. GovtTenderHub collects PWD tenders from all states on one page, with district and value filters.

Can a small contractor get highway work?

Yes. Highway maintenance contracts, short-term repairs, NHIDCL regional works and sub-contracts under EPC packages are within reach of smaller firms. Large EPC and HAM packages need high bid capacity and turnover, so many firms join them through a JV or as sub-contractors.

What is the DLP for road works?

For national highway EPC, 5 years for bituminous roads and 10 years for concrete roads. PMGSY roads carry a five-year maintenance contract, and CPWD road works carry 12 months.

What is PMGSY-IV?

The fourth phase of the Pradhan Mantri Gram Sadak Yojana, approved on 11 September 2024 for 2024-25 to 2028-29. It aims to build 62,500 km of roads to connect 25,000 unconnected habitations, at an outlay of ₹70,125 crore.