Why Punjab's Highway Projects Are On The Brink Of Shutdown

Union Minister for Road Transport and Highways, Nitin Gadkari, recently sent a letter to Punjab Chief Minister Bhagwant Mann, warning that eight highway projects in the state, could be terminated “if the law and order situation does not improve”.

Gadkari's letter, dated 9 August, highlights serious safety concerns for National Highway Authority of India (NHAI) officers, contractors, and staff.

He points to two alarming incidents on the Delhi-Katra expressway — one where the engineer of the contractor was brutally assaulted in Jalandhar, and another where a contractor's project camp in Ludhiana was attacked, with threats to burn the camp and its staff alive.

Issues Of Land Acquisition, Law And Order

The NHAI is developing greenfield and brownfield national highway corridors, including the Delhi-Amritsar-Katra expressway in Punjab.

However, a majority of these have run into major land acquisition hurdles. In many areas, despite acquiring 80 per cent of the land, contractors are not being allowed to start work by farmer unions, which are protesting and demanding more compensation for the land owners. 

The farmers’ protest against land acquisition means that the contractors have started making requests to the NHAI for foreclosing or terminating the agreements.

“...due to pending issues related to land acquisition and the prevailing law and order conditions, a number of contractors-concessionaires have requested to foreclose contracts and have raised claims against NHAI. NHAI has already terminated three projects in Punjab with a total length of 104 km and costing Rs 3,263 crore," Gadkari noted in his letter.

This situation has raised alarm bells at the Centre, prompting NHAI Chairman Santosh Kumar Yadav to seek the intervention of Punjab Chief Secretary Anurag Verma. Gadkari also held a review meeting on 15 July, where he was assured of a quick resolution.

'Inadequate Compensation' Claim

The controversy surrounding Gadkari's letter is more complex than it appears.

Agriculture remains the mainstay of Punjab's economy. Large-scale land acquisition for developmental projects has a significant impact on villagers, many of whom rely solely on their land for livelihood.

According to Kapurthala MLA Rana Gurjit Singh, it is not a law and order problem, the real issue being farmers “not being paid adequate compensation” for the agricultural land acquired for the highway.

While NHAI claims that compensation is being paid according to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013, at two to four times the market rate, Rana Gurjit contends that the market price is inappropriately valued, leading to unfair compensation.

Punjab, which pioneered the Green Revolution in the late 1960s, is witnessing a tragic fall in its agriculture sector.

As such, the landowners are demanding higher compensation and are being suitably aided by famers union. In fact, Punjab Public Works Department officials said they are facing maximum issues in four districts — Ludhiana, Gurdaspur, Tarn Taran and Amritsar — where the farmer unions are very strong.

Adding to the turmoil, the arbitration process in Punjab is mired in delays, with thousands of cases unresolved, some pending for over two years.

What's Next For Punjab

While Gadkari's letter has sparked political debate, the state government insists it is working to resolve the impasse.

Punjab Inspector General of Police Sukhchain Singh Gill assured that the situation is under control and closely monitored by the Chief Minister. A special investigation team has been formed to investigate the incidents, and FIRs (first information reports) have been registered.

However, beyond procedural necessities, the real concern is the potential cancellation of projects. Gadkari has made it clear: if the situation doesn't improve, eight major projects covering 293 km and costing Rs 14,288 crore will be scrapped.

At a broader level, Punjab's agrarian distress requires urgent attention. The agitation against the Union government's three agricultural laws was the natural culmination of the deep agrarian crisis. As such, the state's farmers are likely to remain central to the political landscape in the near future.

To avert the crisis resulting from land acquisition for developmental purposes, it is crucial to create long-term livelihood opportunities for displaced farmers, as compensation alone may not be sufficient for agrarian communities.