NHIDCL Terminates Contracts Due to Delays in Road Construction in Assam

The NHIDCL has terminated contracts with M/s Sadguru Engineers & Allied Services Pvt Limited due to ongoing delays in road construction from Jorhat to Jhanji. This decision marks the fifth contractor dismissal this year, highlighting persistent issues with project execution. The contractor faced accusations of misrepresentation and failure to maintain completed road sections, leading to safety hazards. NHIDCL plans to recover costs incurred in completing the project from the contractor. Previous contracts have also been terminated for similar reasons, indicating a broader issue with infrastructure projects in Assam.

By Narendra Chaudhary Jun 11, 2026, 08:40 IST

Termination of Contracts by NHIDCL

File image of Jhanji-Demow stretch of NH-37 (Photo: NHIDCL)

Guwahati, June 11: The National Highways and Infrastructure Development Corporation Limited (NHIDCL) has officially ended two contracts with M/s Sadguru Engineers & Allied Services Pvt Limited concerning the construction of the remaining four-lane road from Jorhat to Jhanji. The contractor has been instructed to vacate the site within a 15-day period. This marks the fifth instance this year where NHIDCL has dismissed a contractor in Assam due to significant delays in project execution.

The contractor has been accused of “deliberate misrepresentation,” “willful concealment of material facts,” and “persistent breach of contractual obligations.”

In the termination notice, NHIDCL highlighted that the contractor had secretly subcontracted the project to another entity and misrepresented this arrangement as a simple supply agreement when questioned. The letter stated, “It has sought to shift responsibility for its own sustained non-performance onto the authority through manufactured allegations.”

The project was initially scheduled for completion within six months, yet it remains unfinished even after more than 800 days. The contractor was tasked with completing a limited scope of work, including the rehabilitation of two major bridges left incomplete by a previously terminated contractor, along with a 10 km stretch of road.

Despite NHIDCL providing exceptional support beyond contractual obligations, including financial assistance, the contractor allowed completed sections of the road, which were carrying live traffic, to deteriorate due to lack of maintenance, thereby endangering road users. This failure has led NHIDCL to re-tender the remaining work at a significantly higher cost, incurring additional tendering and administrative expenses.

Since October, the project site has been left abandoned. The contractor had illegally subcontracted 85% of its work to two firms, MP Agarwala (P) Ltd and M/s Kiraats Constructions (P) Ltd.

The termination notice also stated that all costs incurred by NHIDCL to complete the project will be reclaimed from the contractor.

Earlier in March, NHIDCL had terminated a contract with M/s Binni Construction for a 14 km stretch of four-lane work between Jorhat and Jhanji due to the contractor's failure to meet performance standards, including the maintenance of adequate materials and manpower. The contractor attributed delays to rainfall, but data contradicted this claim.

In February, NHIDCL also terminated the contract with M/s RK Infracorp Limited for strengthening and improving a two-lane road from Bogapani to Golai Gaon, which was supposed to be completed by December 2025. However, by January, only 22.73% of the work had been completed.

Additionally, the contract with M/s Shankar Agarwal for four-lane work between Dillai and Lahorijan was also terminated due to excessive delays in execution.