The Ministry of Road Transport and Highways has revised its performance rating system for consultants, awarding associate partners 75% of the lead consultant's score. This policy change aims to improve the quality of project reports and address the slowdown in highway construction, which hit an eight-year low in FY26.
The Ministry of Road Transport and Highways (MoRTH) has introduced a revised performance rating framework for consultants responsible for Detailed Project Reports (DPRs). This change is a direct attempt to fix quality issues in project planning that have contributed to recent delays and a decline in new highway project awards. In India, the speed of highway construction dropped to an eight-year low in FY26, and project awards have decreased from 12,376 km in FY23 to roughly 7,538 km in FY25, highlighting the need for better project preparation.
Impact on Consultant Accountability
Under the new structure, the ministry will differentiate between lead consultants and associate partners. Previously, all firms involved in a project received the same rating, regardless of their specific contribution. Now, associate partners will be assigned 75% of the rating achieved by the lead consultant. The ministry will publish these associate ratings separately, while lead firms and joint venture partners will continue to receive full project scores. This move is designed to ensure that performance records better reflect the actual technical responsibility and accountability of each firm involved in highway planning.
By incentivizing lead consultants to take greater ownership of the entire DPR process, the government aims to reduce common problems such as inaccurate surveys, poor design choices, and the need for frequent revisions. These planning errors have historically caused significant cost overruns and pushed back construction timelines for contractors.
Sector Implications
This policy shift is expected to alter the competitive dynamics within the infrastructure consultancy sector. Larger firms that typically act as lead consultants may benefit from ratings that more clearly showcase their end-to-end capabilities. Conversely, smaller firms that have relied on associate roles may find it necessary to build independent project delivery capabilities to secure higher ratings in future bids. As the government continues to prioritize efficiency in infrastructure development, investors may watch whether these changes help stabilize the pace of project awards and execution for major road construction companies.
Future Monitorables
For investors and industry participants, the next critical update will be the impact of these ratings on future contract bidding processes. As the ministry integrates these more granular performance scores into tender evaluations, it may create a clearer divide between top-tier consultants and those with lower performance quality. The primary indicator of success will be whether the quality of DPRs improves, leading to a reduction in project delays and a recovery in the pace of national highway construction in the coming quarters.