NHAI scraps 4 lane greenfield Amritsar connectivity project due to land acquisition issues

Due to Punjab government’s failure to acquire land, the National Highways Authority of India (NHAI) has terminated the contract with the firm concerned for construction of the Amritsar-Tarn Taran stretch of the Delhi-Amritsar-Katra Expressway, part of the Centre’s Bharat Mala Pariyojna project.

This was revealed in a recent communication from the firm, Ceigall India Limited, to the stock exchange as part of the mandatory reporting process.

According to the letter dated February 26, 2025, the NHAI has terminated the contract for the four-lane greenfield expressway segment connecting Amritsar with the DAK Expressway from MDR Junction at chainage 40+900 (Dhundha village, Tarn Taran) to chainage 70+950 (near Mannawalla village, Amritsar).

“NHAI could not accede to the company’s request for revocation of the termination of the contract agreement as the land acquisition was not achieved significantly for the project stretch. The Authority has agreed to pay damage equivalent 1% of contract price as per Clause 3.4 of the contract agreement,” reads the letter submitted by the company to the National Stock Exchange (NSE).

The development is a major setback for the state.

Amritsar Member of Parliament (MP) Gurjeet Singh Aujla said, “Once again Punjab lagged due to government’s failure. This project, worth ₹1,071 crore, was being implemented under the EPC (engineering, procurement, construction) model. The state government focused only on politics, which led to the scrapping of this very important project. Several months ago, I had advised CM Bhagwant Mann to understand the seriousness of this project, but he listens to the opponents only for politics.”

“Earlier in August 2024, transport and highways minister Nitin Gadkari had also written to CM Mann warning that if the work on the projects in Punjab is not done smoothly and the land is not acquired, then the projects will be terminated,” the MP added.

He said the NHAI has already closed 104 km of projects worth ₹3,263 crore.

Activists of Amritsar Vikas Manch (AVM) said, “After widespread protests and interventions by Union minister Nitin Gadkari, an Amritsar spur was added to the project, ensuring connectivity to the city and Amritsar Airport. The latest cancellation, however, marks yet another blow to the region’s infrastructure development”.

AVM president Harjap Singh Aujla called this a “deliberate injustice” against the holy city. “Amritsar is one of the most important cities in Punjab, yet successive state governments continue to ignore the development in major infrastructure projects. This expressway would have provided a direct high-speed link to Amritsar and the city’s airport, benefiting not just the city’s economy but also religious and tourism-related travel. The authorities must be held accountable for this negligence,” he said.