India

India's Ministry of Road Transport and Highways mandates monthly payments and one-month price-adjustment window for contractors

Contractor finance teams receive monthly payments and price adjustments

Supply Chain & Logistics Financial Services
Economic Times ·
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India's Ministry of Road Transport and Highways shortened the price-adjustment window to one month and ordered that contractors on engineering, procurement and construction (EPC) and Hybrid Annuity Model (HAM) projects receive payments monthly — including price adjustments and escalation for work meeting quality specifications — effective April 1 through June 30, 2026 (or until the global situation improves).
Why it matters
Payments under Schedule H for EPC contracts and Schedule G for HAM contracts will be disbursed on a monthly basis for executed work that complies with quality specifications, with price adjustments and escalation paid alongside those monthly bills. The provision is time-limited: it is in force from April 1 through June 30, 2026 (or until the global situation improves) to address commodity-price volatility tied to the Middle East situation.
Implications
  • — Contractor finance teams at EPC and HAM projects must submit monthly executed-work claims that meet quality specifications starting immediately (April 1, 2026) — claims that do not comply will not be eligible for the monthly price-adjustment and escalation payments.

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Source
Economic Times
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