The Ministry of Road Transport and Highways has asked NHAI and states to strictly adopt e-tendering system for better transparency in highways projects, saying it is not being properly implemented.

"E-tendering system which has been proposed by the ministry for better transparency of works on the national highways is not being followed for some of the projects in some states," the Ministry of Road Transport and Highways said in a letter to NHAI (National Highways Authority of India). The copies of the letter have been forwarded to the states and other government bodies.

The ministry has decided that all the executing agencies will have to follow the e-tendering system on mandatory basis for all NH works and for other centrally sponsored schemes with effect from January 1, 2012, it said.

The e-tendering system would also apply to the National Highway Development Programme (NHDP), PPP (Public-Private- Partnership) projects on the NHs.

The ministry said: "In case any executing agency is encountering any difficulty in setting up the e-tendering system, it may approach NIC (National Informatics Centre) or the ministry for necessary facilitation".

"After January 1, 2012, the expenditure incurred on any work in which e-tendering system has not been followed, will not be entertained for reimbursement by the ministry," it added.

E-tendering which is aimed at improving transparency and speeding up the bidding process for national highways, was introduced by the Ministry of Road Transport and Highways in May, this year and all the projects after August were processed through the e-tendering route.