No.

RWINH-33044/1212019-S&R(P&B)
Government of India
Ministry of RoadTransport &Highways
(S&R(P&B)Section)
Transport Bhawan, 1, Parliament Street, New Delhi-110001
Dated:l~~arch, 2019
Office Memorandum

Subject:- Procedure to be followed for taking approval and condition to

be included in Administrative SanctionlTechnical note etc.

Please find enclosed herewith a copy of the Officer Order No.

Secy/RTH/Circular/005 dated 9th March,' 2019 issued from the Desk of Secretary
(RTH) regarding Procedure to be followed for taking approval and condition to be
included in Administrative Sanction/Technical note etc. for the following for
compliance and further necessary action:

i. Proposals approved under CRF

ii. Proposals for one-time improvements
iii. Proposal for periodic Renewal/Strengthening
iv. Breaking-up proposats below Rs. 5.00 Crore to avoid EPCmode of execution
v. Calculation of cost-estimate and the provision of contingencies/centages
vi. Amount put to tender

Yours Faithfully

End: As above.

~hadablmam)
Assistant Executive Engineer, S&R (P&B)RS
For Director General (Road Development) & SS
To,
1. Director General (RD) ass
2. All ADGs/CEsof Project Zones in MoRTH
3. All CE-RO/SE-RO,MoRTH.
4. All SEsfor the Project Zones in MoRTH

Copy also to:

1. Additional Secretary & Financial Advisor
2. Additional Secretary, MoRTH
3. JS (Highways)
4. JS (NHIDCL)
 No. Secy/ RTH/ Circular/ 005
Mini$tr:y of Road Transport & Highways
Transport Bhavan,1, Parliament Street, New Delhi -110001

From the Desk of Secretary

March 09, 2019

Office Order

I have received a number of proposals during the last one week for sanction of works
under CRF/ ISEC/ IRQP in respect of certain states as well as for Periodic Renewal/
Strengthening of part stretches of the National Highways/ One-time Improvement works,

2. I have recommended these casesfor approval of the Competent Authority, wherever

required, and cleared a number of proposals at my level. It may be noted that while issuing
Administrative Sanction/ Technical Notes, the following conditions must be included in the
same;

2.1 Proposals approved under CRF: .

(i) Since the works under the CRF have been sanctioned with a high level of Bank of
Sanctions (BoS) in mast of the cases) every sanction/ administrative approval must
include the following as one of the stipulations:

"Approval to the State's proposal is accorded subject to the condition that the
responsibility of the 'Central Governmentshall be restricted to the accrual of CRF
for the state and the State Government shall ensure to managefunds/resources
to take up the works beyond their share of CRF accruals from their own
resources",

(ii) Any sanctions issued in the past without the above stipulation must be followed by
an addendum/ amendment in the Administrative Approval already issued.

2.2 Proposals for one-time improvements;

(i) It has been observed that proposals for one-time improvement of certain stretches,
which were bypassed a few years ago and which are deemed to have been de-
notified as NH on account of having been bypassed, are being entertained. This is
inconsistent with the intentions behind the Government instructions on the subject.

(ii) As such, it may be ensured that only such of the proposals are entertained and
processed for one-time improvement where the bypass to such stretch was opened
to traffic not longer than six months before the consideration of any such proposal.
Once the Bypasshas been opened to traffic for a period of six months or more, no
proposal for 'One-time Improvement' shall be considered/ processed.

2.3 Proposals for Periodic Renewal! Strengthening:

While considering propesats for Periodic Renewals/ Strengthening of a certain

stretch of a National Highway, it must be ensured and certified that that a period of
at least one year has elapsed after the expiry of Defect Liability Period.

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"
No. Secy/ RTH/ Circularl 005
Ministry of Road Transport & Highways
Transport Bhavan,1, Parliament Street, New Delhi -110001

From the Deskof Secretary

2.4 Breaking-up proposals below Rs. 5.00 cr. to avoid EPCmode of execution:

It has been observed in a few cases that separate proposal for less than 5.00 crore
have been processed in the same stretch of the NH, primarily with a view to
undertake such works on Item-Rate basis as the Road works of the value of Rs. 5.00
crore and above have to be taken up in EPCmode as per the extant guidelines. Any
such practice would be viewed seriously and the CE/ ADG concerned shall be
personally responsible for processing any such case.

2.5 Calculation of Cost-estimates and the provision for Contingencies/ Centages

(i) It has been noted that in spite of specific instructions from the DG (RD) &5S,
calculation of GST and other Centages is not being done as per instructions. The
Standard method of calculations, as under, shall be meticulously followed in each
case processed and submitted for approval:

Sr. Description Amount in Rs.

No,
1. Designed Length - Km
2. Construction Period - Months
Civil Construction Cost Estimates
(i) Civil Construction Cost (Road Portion)
(ii) Civil Construction Cost (Structures)
A. Total estimated Civil Construction Cost
Pre-Construction Activities
(i) Land Acquisition Cost
(iil Utility Shifting
(iii) Tree-felling! Forest Diversion
B Total Pre-construction Estimates
(i) GST @ 12% of tAPabove if the SOR does not include any component of
VAT/GST
(ii) Contingencies @ 2.8 % of A above
(iii) Agency Charges 3% on 'A'
(iv) Supervision Charges 3% on 'A'
(v) Price Escalation @ 5% of 'A' above as per phasing of the project execution
only for the period beyond one year of the Bid submission date
(vi) Maintenance during Constructionl Defect Liability Period (calculate as per the
rates prescribed in the latest document on EPC Contracts)
C. Total Provision for GSTI Contingencies and Centages
D. Total Sanctioned Cost of the Project (A+B+C)

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 No. Secy/ RTH/ Circular/ 005
Ministry of Road Transport & Highways
Transport Bhavan,1, Parliament Street, New Delhi -110001

From the Deskof Secretary

(ii) As for the provisions for GST, it is a part of the sanctioned Cost-estimates of the
project. Now, this is being added in the cost-estimates straightway @12%,whereas
the fact is that the 50Rs of certain states are inclusive of the component of VAT/
GST. This status must be ensured before making a straight provision of 12%GST in
the estimates;

2.6 Amount put to Tender:

While GST, Contingencies, and Centages are part of the approved cost-estimates for
any project! proposal, it is only the estimated Civil Construction Cost, which shall
be put to Tender while inviting the bids. This may be made a part of the Technical

~·
Note/ Administrative Approval.

I (Y. S. MaliK)
Secretary

1. Director General (RD) & 55

2. All ADGs/ CEsof Project Zonesin MaRTH
3. All SEsfor the Project Zones in MoRTH

Copy also to:

1. Additional S.ecretary& Financial Advisor

2. Additional Secretary, MoRTH
3. JS(Highways)
4. J5(NHIDCL)

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