Section 31 of NHAI Act : Section 31: Power Of The Central Government To Temporarily Divest The Authority Of The Management Of Any National Highway

Explanation using Example

Imagine the Central Government has decided that a certain stretch of National Highway 44 requires urgent upgrades and maintenance due to increased traffic and safety concerns. After internal deliberations, the government concludes that a private construction company with specialized expertise in highway expansion is best suited for this task.

The government then invokes Section 31(1) of The National Highways Authority of India Act, 1988, and issues an order directing the National Highways Authority of India (NHAI) to entrust the project to this private company for a specified period, say two years, starting from an announced date.

Following this order, as per Section 31(2), the NHAI steps back from its usual role in managing this highway stretch, and the private company takes over, adhering to any specific instructions provided by the Central Government.

If necessary, as per Section 31(3), the government could later decide to extend the company's management period if the project's completion is delayed or to shorten it if the work is completed ahead of schedule.

During the project, as indicated by Section 31(4), the Central Government might find it necessary to guide the private company by issuing directions to ensure the project aligns with national standards and objectives, which may include transferring funds from the NHAI for the project.

Once the period of management ends, as described in Section 31(5) and (6), the private company will be required to cease its functions related to the highway and return the control back to NHAI, including any remaining assets or funds associated with the project.