The Government of Arunachal Pradesh has taken a decisive step in its infrastructure crackdown by terminating the contract with M/s Woodhill-Shivam (JV). The joint venture was responsible for the construction of Package B of the crucial four-lane highway connecting Papu Nallah to Nirjuli. The termination letter, issued by the PWD Highway Chief Engineer on April 29, 2026, marks the end of a partnership plagued by delays and unmet contractual obligations.
The project, valued at over ₹341.71 crore, was awarded in December 2021 with a strict completion deadline set for December 6, 2024. However, as of early 2026, the physical progress of the 11.3 km stretch—which includes a nearly 4-km-long flyover—stands at a mere 51.37%. Despite the intervention of the Gauhati High Court following a Public Interest Litigation (PIL), the contractor failed to meet the prescribed project milestones.
According to the PWD (Highway) Department, the decision followed a long history of “systemic deficiencies.” The department alleged that M/s Woodhill-Shivam showed a persistent lack of planning, inadequate resource deployment, and a total disregard for the commitments outlined in the EPC (Engineering, Procurement, and Construction) agreement. Officials noted that multiple “cure period notices” and an intention-to-terminate warning were issued earlier this year, yet no meaningful improvements were observed at the site.
Highway Chief Engineer CS Choutang confirmed that the state acted only after receiving formal permission from the Ministry of Road Transport and Highways. The contractor has now been ordered to hand over the site, including all project facilities and equipment, within 15 days. A joint assessment is scheduled to take place shortly to determine the status of the work completed thus far.
The termination highlights the state’s toughening stance on infrastructure delays. Package B remains a vital link for residents of the Capital Complex, and the government is expected to move quickly to re-tender the remaining work to ensure the highway is finally completed for public use.
