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March 2, 2026

PMO Mandates Third-Party Audits for Road and Rail Projects

The CSR Journal Magazine

In a move aimed at enhancing the quality of infrastructure development, the Prime Minister’s Office (PMO) has instructed the ministries of road transport and railways to implement independent third-party audits for ongoing projects. This decision comes as construction efforts ramp up across various transportation corridors, with an emphasis on reducing project delays. Prime Minister Narendra Modi has emphasized the need for the road transport ministry to examine construction practices from the Golden Quadrilateral (GQ) project era, which saw minimal complaints regarding quality during its execution.

The PMO has recommended that the ministry look into third-party audit practices employed in countries like Indonesia, which has successfully institutionalized quality and accountability measures in its large infrastructure projects. Additionally, Malaysia has recently introduced external audits to assess project quality, illustrating a growing trend in thorough oversight for infrastructure development.

Objectives for Enhanced Speed and Efficiency

Both ministries have received directives to improve the speed of train and vehicle movement within their respective corridors, reflective of the substantial investments being made in these sectors. Specifically, the road transport ministry is tasked with identifying and addressing factors that currently limit the average speed of freight trucks on high-speed routes to around 50 kilometers per hour, compared to the target speed of 70 kilometers per hour. Concurrently, the railways will set incremental targets to elevate train speeds on designated corridors from their current average of 110 kilometers per hour to 130 kilometers per hour, and potentially higher, exceeding 200 kilometers per hour.

Officials associated with highway projects have acknowledged the urgent necessity for a renewed focus on quality, given that the upcoming phase of highway development is expected to include more expressways and economic corridors designed to facilitate quicker transport for freight and passengers. Steps have already been initiated to reassess construction timelines in contractual agreements, extending the current two to two-and-a-half years to three years. This phase will aim to eliminate any incentives provided to contractors for expedited completion of projects.

Concerns from Industry Professionals

Engineers engaged in both the GQ and ongoing highway projects have noted that, although the scale of the earlier construction was smaller, there was a rigorous emphasis on monitoring material quality. Historical accounts suggest that the authority’s engineers and consultants were predominantly from international backgrounds, who maintained strict quality standards. A prominent highway construction firm executive revealed that during the GQ implementation, government engineers and consultants consistently upheld quality against any external pressure.

During a quality enhancement strategy meeting, an official supervising the sector highlighted the importance of stringent monitoring and adequate time for project preparation. He stated that rushing completion often leads to compromised quality. A former director general of roads expressed concern that, with the increasing number of highway builders, construction standards have suffered. He pointed out that experienced engineers and independent consultants often encounter undue pressure, which jeopardizes ongoing projects.

Furthermore, the need for clarity in oversight responsibilities is crucial, as authorities must decisively support diligent government employees and reject any misconduct. Enhancing the credibility of quality testing agencies to uphold rigorous standards is also deemed essential for maintaining construction integrity.

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