Blueprints Backed by Banks: Govt Makes Performance Guarantee Key to DPR Consultant Selection

In a decisive move to enhance accountability and quality in highway planning, the Ministry of Road Transport and Highways (MoRTH) has announced that Performance Bank Guarantees (PBGs) will now be a central criterion for selecting consultants tasked with preparing Detailed Project Reports (DPRs). This marks a shift from the traditional lowest-bid model to a quality-first approach.

 

Key highlights of the new framework:

 

- Bidding will be based on fixed-price contracts, with the PBG amount serving as the differentiator among firms.

 

- Higher PBGs will reflect a consultant’s confidence in delivering top-tier DPRs, with forfeiture risks for underperformance.

 

- The ministry will also introduce a rating system for DPR consultants and independent engineers, factoring in past project outcomes and technical capacity.

 

Why this matters:

 

- Faulty DPRs have been linked to recent infrastructure failures, including tunnel collapses and bridge mishaps.

 

- The new system aims to weed out low-quality bids and incentivize firms to prioritize precision and safety.

 

Technology and transparency:

 

- Automation and intelligent machine-aided construction (AIMC) will be mandatory for greenfield and high embankment projects.

 

- States will be ranked based on land acquisition efficiency and record quality, influencing project approvals.

 

This reform is expected to reshape India’s highway development landscape, ensuring that every blueprint is backed not just by expertise—but by financial accountability.

 

Sources: ETInfra, Times of India, Profitnama, Ministry of Road Transport and Highways.