Arunachal government terminates Rs 341.71 crore highway contract over delays

The Arunachal Pradesh government has terminated the contract awarded to M/s Woodhill-Shivam (JV) for Package B of the four-lane highway project between Papu Nallah and Nirjuli, citing failure to meet contractual obligations.

 

Chief Minister Pema Khandu said the decision followed repeated warnings, review meetings and support extended by the Public Works Department (PWD). The termination order was issued on April 29 by the PWD (Highway) Chief Engineer.

 

The contract, awarded on December 8, 2021, was valued at Rs 341.71 crore, with a completion deadline of December 6, 2024. Officials said physical progress on the project stands at 51.37 per cent, far behind schedule.

 

According to the agreement, the contractor was responsible for the timely mobilisation of resources, maintaining construction standards and ensuring that the highway remained safe and traffic-worthy during execution. The department alleged these conditions were not fulfilled.

 

PWD officials said several opportunities were given to address delays and deficiencies, including cure period notices and a formal notice of intent to terminate issued on February 13, 2026. However, no meaningful improvement was recorded.

 

“The project has suffered from systemic deficiencies, including lack of planning, poor project management, inadequate resource deployment, and disregard of contractual commitments,” the department said, adding that these lapses affected progress, quality and timely completion.