Chandigarh | January 18, 2026
In a major shift in Punjab’s urban infrastructure policy, the Greater Mohali Area Development Authority (GMADA) has decided to hand over the Mohali road maintenance private players set to upgrade and manage 83 km of city roads under GMADA’s ₹783 crore infrastructure programme, marks the first time the state is outsourcing large-scale road maintenance to private firms for a long-term period.
Under the plan, selected private concessionaires will be responsible not only for repairing roads but also for their design, improvement, beautification, and upkeep for the next 10 years.
A First-of-Its-Kind Initiative in Punjab
The officials termed the move as a part of the recently implemented Mohali Next Generation Roads Programme, the objective of which was to provide the city, which had witnessed rapid growth, with better road quality, increased lifespan, and improved driving conditions.
With Mohali witnessing rapid urban expansion, authorities believe the traditional government-managed maintenance system is no longer sufficient to meet rising traffic pressure and infrastructure demands.
“This model focuses on long-term performance rather than short-term repairs,” a senior GMADA official said.
₹10 Crore Per Kilometre Project Cost
The project cost works out to approximately ₹10 crore per kilometre, covering:
- Strengthening and resurfacing of existing road
- Improvement of junctions and intersections
- Upgradation of road shoulders and drains
- Installation of proper signage and road furniture
- Continuous maintenance during the concession period
Officials clarified that the amount includes both initial development and long-term maintenance, not just repair work.
Model of Hybrid Annuity to be used
The e-tenders advertised by GMADA have been based on the Hybrid Annuity Model roads (HAM), which is usually applied to national highways but not to urban roads.
Punjab private road contract marks a major infrastructure shift as private companies take over long-term maintenance of key Mohali roads.
Under this model:
- The project will be implemented and served by the private firm.
- Salaries will be paid in performance schedules.
- Quality and timelines will be monitored by a special Project Management unit (PMU).
Notably, there is no new land acquisition and all the work will be performed within the current road width which is between 23 metres and 60 metres.
Major Stretches of Road to be Covered
The project comprises busiest arterial roads and crossroads of Mohali, which contain parts of commutative traffic of the town linking Chandigarh, Zirakpur, and adjoining sectors on daily basis.
Prior to the commencement of execution, GMADA and the chosen concessionaire will collaborate and come up with an elaborate list of the current road conditions, which will form the foundation of upgrades and the subsequent maintenance requirements.
Popular Argument of Cost and Time
On the one hand, the initiative is prospective in the eyes of the government; however, the proposal has also caused controversy.
There are concerns that the cost per kilometre is very high and the concession period taking 10 years, which has raised questions among the residents and activists, needs to be made transparent and of high quality.
Other critics like social activist and well known filmmaker Amitoj Mann have also come out publicly to express his concerns and seek clarity on accountability and benefit to the people.
Authorities however assert that the project is aimed at long term value citing that constantly involved short term repairs are at times more expensive in the long run without producing long term quality.
Bidding Process Underway
Online bids for the project are currently open. A pre-bid meeting has already been conducted, and technical bids will be evaluated first, followed by financial assessments.
The final selection is expected in the coming weeks, after which on-ground work may begin later this year.
What This Means for Mohali Residents
If implemented effectively, the initiative could significantly improve:
- Road lifespan and surface quality
- Driving safety and smoother traffic flow
- Urban appearance through planned beautification
- Faster repairs through single-agency responsibility
Urban planners say the project could become a model for other Punjab cities if successful.
Conclusion
The move to engage the private players in the maintenance of the road network in Mohali is a radical step toward the governance of the urban areas. Cost concerns are still paramount but the success of the project will be eventually realized in the monitoring of quality and transparency which will be the defining factor of whether this bold step is noise that will turn the Mohali roads or yet another controversial infrastructure experimentation.