Gawar Construction Gets Contract for Mohali Roads Amid Ongoing Legal Scrutiny

The Punjab government has awarded the ‘Mohali Next Generation Roads Program’ to Haryana-based Gawar Construction Limited, even as the project remains under legal scrutiny and may undergo a reduction in scope. The development comes nearly three months after the issue was first reported. According to a senior government official, the Hisar-based company has been issued a Letter of Award under the Hybrid Annuity Model (HAM). The project involves the upgradation, repair, and beautification of 83.4 kilometers of roads and junctions in Mohali. Gawar Construction’s bid of ₹673.99 crore was accepted as the lowest offer. However, when interest costs of ₹238.64 crore over a 10-year period are included, the total project cost is expected to reach ₹912.63 crore. This translates to an approximate cost of ₹11 crore per kilometer for a decade, which is significantly higher than the originally estimated project cost of ₹783.46 crore. The increased expenditure has previously drawn public criticism. The project has been awarded with two key conditions. Firstly, its final execution will depend on the outcome of petitions filed in the High Court by the GMADA Contractors Association and VRC Constructions. Secondly, the scope of work may be reduced if required, subject to approval from higher authorities, and the company will be informed accordingly. It is noteworthy that the project’s cost and scope have undergone multiple revisions in the past. The company has been directed to deposit the required performance security within 15 days of receiving the allotment and to sign the agreement within the stipulated time. Failure to comply with these conditions may result in cancellation of the project.