SRINAGAR: The National Highways and Infrastructure Development Corporation Limited (NHIDCL) has terminated the Rs 436.37-crore contract for the Kishtwar Bypass project under Package-IV of National Highway-244, citing prolonged delays, failure to achieve contractual milestones and unsatisfactory execution by the contractor.
According to the termination notice issued by NHIDCL, the Engineering, Procurement and Construction (EPC) contract awarded to M/s APS Hydro Pvt. Ltd. and M/s Unique Construction Joint Venture has been terminated under Clause 23.1 of the Contract Agreement. The authority has also imposed a two-year debarment on the joint venture and the parties covered by the relevant contractual provisions, barring them from participating in future NHIDCL tenders, either individually or as part of a joint venture.
The decision follows the project’s failure to meet its revised completion deadline despite an extension of 861 days. Cumulative physical progress remained at approximately 50.64 per cent, according to the details cited in the termination notice.
Project remained incomplete despite extended deadline
The contract, signed on August 11, 2021, envisaged the construction and upgradation of a two-lane highway with paved shoulders along the Khellani–Kishtwar–Chattroo section of NH-244, covering the stretch from Design Km 80.675 at Dulhasti to Km 95.550 at Bandarkoot.
The project covers approximately 14.88 kilometres of highway, besides a 1.871-kilometre link road connecting the alignment to Kishtwar town.
The work was originally scheduled for completion within 24 months, with August 23, 2023, fixed as the deadline. However, delays, including prolonged gaps in the submission of designs for major structural components, affected the pace of execution.
NHIDCL subsequently granted an Extension of Time (EoT) of 861 days, extending the deadline to December 31, 2025. Despite the additional time, the contractor failed to achieve the prescribed Milestone-III and complete the project within the revised contractual schedule.
Monitoring and review assessments conducted through 2026 reportedly showed that overall physical progress had reached only around 50.64 per cent, highlighting the gap between the stipulated targets and actual execution.
Shortage of manpower, machinery and resources cited
The termination notice also points to inadequate mobilisation of manpower and resources at the project site.
According to the assessments cited by NHIDCL, the contractor failed to deploy the workforce and resources required to maintain the pace of construction. Against a requirement of approximately 250 skilled workers for structural and allied works, the contractor reportedly maintained a workforce of around 141 personnel.
The shortage of manpower, along with reported deficiencies in the mobilisation of construction materials, machinery and technical resources, affected several critical components, including bridge foundations, substructures and drainage systems.
Site inspections and monitoring reports prepared by the Authority’s Engineer and Special Project Monitors also formed part of the assessment of the contractor’s performance.
Repeated reviews failed to ensure progress
The corporation’s notice records that senior NHIDCL officials repeatedly reviewed the project during 2025 and 2026, including at meetings chaired by the Managing Director, Director (Technical) and Executive Directors.
Despite these interventions and the timelines reportedly committed by the contractor during review meetings, the project failed to achieve the expected progress.
NHIDCL observed that the contractor had not taken adequate corrective measures to address persistent execution-related shortcomings. The authority cited the continued failure to fulfil contractual commitments among the grounds for taking action under the agreement.
The termination followed repeated missed targets, continued delays and the failure to complete the work despite the substantial extension of the original deadline.
Contract terminated under Clause 23.1
NHIDCL has invoked Clause 23.1 of Article 23 of the Contract Agreement, citing persistent defaults and failures to fulfil contractual obligations.
The grounds specified in the notice include Clause 23.1(i)(c), relating to failure to achieve outstanding project milestones within the stipulated period; Clause 23.1(i)(e), concerning failure to proceed with the works or stopping work for the specified period; Clause 23.1(i)(f), relating to failure to complete the project within the prescribed or extended schedule; and Clause 23.1(i)(p), concerning failure to fulfil contractual obligations.
The termination notice was issued by Ashish Gupta, Deputy General Manager (Technical), Jammu Geographical Division, NHIDCL.
In addition to terminating the contract, NHIDCL has invoked Clause 23.1(v) to debar M/s APS Hydro Pvt. Ltd., M/s Unique Construction and the parties covered by the relevant contractual provision for two years. They will not be eligible to participate in NHIDCL tenders during this period, either independently or as part of a joint venture.
Strategic NH-244 connectivity project hit by setback
The incomplete project forms part of the NH-244 corridor, an important road link serving Kishtwar and adjoining areas of the Chenab Valley. Improvements to the highway are significant for regional connectivity, transport, access to essential services and the movement of people and goods.
The termination raises questions about the next steps required to complete the remaining work and prevent further delays on the strategically important stretch.
With only about half of the planned physical work completed, taking forward the remaining construction will be crucial to ensuring that the investment translates into improved road connectivity for the region.
NHIDCL’s action marks a significant contractual step against the executing joint venture over the recorded delays and failure to meet the extended completion schedule. The next priority will be to determine how the unfinished components are to be taken forward and ensure that the remaining work is completed within a realistic timeframe.
The termination notice brings the existing contractual arrangement to an end and underscores the importance of timely execution, adequate resource mobilisation and accountability in major highway infrastructure projects in the Chenab Valley.
Contractors, material suppliers and employees left in the lurch
The termination has also brought to the fore concerns over pending payments to contractors and material suppliers associated with the project, who have reportedly been left in the lurch because of outstanding dues.
Several employees of the company are also said to be facing financial hardship, with their salaries allegedly remaining unpaid. Meanwhile, the situation at the company’s Kishtwar office has reportedly become uncertain, with most of its senior officials having left the district.
Contractors, suppliers and employees are reportedly struggling to contact the management and ascertain the status of their pending payments and salaries. The development has added to the uncertainty surrounding the project, with those associated with its execution concerned about recovering their dues and settling outstanding liabilities.
