₹575-Crore Question: How delays and negligence by a Hyderabad-based company have cost Andaman’s economy dearly

Several prominent islanders have demanded a CBI inquiry into the matter, alleging corruption by the contractor in collusion with senior officials of the Andaman and Nicobar administration responsible for overseeing the project’s progress and performance

A flagship highway project meant to modernise road connectivity across the Andaman & Nicobar Islands has turned into a prolonged saga of missed deadlines, poor execution, and mounting frustration. More than seven years after work began on the upgradation of National Highway- NH-4, large sections remain incomplete, leaving residents and businesses grappling with poor infrastructure and economic losses.

NHIDCL data reviewed by The Wave Andaman show that Package II (Km 242–298), handled by the Vasishta–Mantena joint venture, carries a sanctioned cost of Rs 409.85 crore, with financial progress listed at roughly 95 percent as of mid-2025. Package IV (Km 206–242), executed solely by Vasishta Constructions, has a sanctioned cost of Rs 234.27 crore and shows financial progress near 80 percent. Both packages, originally due for completion in 2019–2020, are now rescheduled to December 2025. Based on these percentages, the value of work certified so far is estimated at more than Rs 575 crore, though NHIDCL does not specify actual disbursements.

According to official records of the National Highways and Infrastructure Development Corporation Ltd (NHIDCL), Vasishta Constructions Pvt Ltd and its joint venture partner Mantena Infra LLP were awarded multiple packages of the NH-4project between 2017 and 2018. The contracts were meant to upgrade and widen key stretches connecting South, Middle, and North Andaman, the main logistical artery for goods, tourism, and daily life in the islands. Vasishta Constructions Private Limited (VCPL), incorporated in October 1991, is a Hyderabad-based infrastructure company engaged in executing projects across irrigation and flood control, roads and bridges, and building and structural works. The company was founded by M. Naga Raju, M. Sivarama Raju, M. S. K. Subba Raju, and M. Krishna Chaitanya.

Performance issues have persisted for years. In November 2022, NHIDCL declared M/s Mantena Vasishta Strait (JV) a “Non-Performer” for Package III after repeated delays and missed milestones. The remaining work on that stretch was reassigned to RKEC Projects Ltd in 2024. A year later, in July 2023, NHIDCL terminated the Middle Strait Bridge contract, also awarded to the Mantena–Vasishta partnership, under Clause 23.1 for non-performance. The unfinished 1.96-kilometre bridge, a critical link between Baratang and Middle Strait, has since been re-awarded to RKEC Projects–YFC (JV) with a new target completion date of February 2026.

The delays have severely disrupted the local economy. For daily commuters and transporters, the road has become a costly obstacle. Frequent diversions, uneven surfaces, and muddy patches have pushed up fuel consumption and vehicle maintenance costs. Tourism operators say the poor condition of the road has reduced visitor movement and increased travel times, hurting an industry that supports thousands of livelihoods. “We used to cover Rangat to Sri Vijaya Puram in three hours; now it takes almost six,” said a driver who runs between the two towns. “Every trip eats into our income.”

Public anger has intensified over the last two years. In October 2023, island residents and local political leaders staged protests demanding that NH-4’s completion be prioritised, describing the road as “a matter of survival for islanders.” NHIDCL officials subsequently promised to fast-track the pending works, but little has changed on the ground. TSG Bhasker, chairman of the ANTCC Campaign Committee, has pointed out that Rs 330 crore had been sanctioned for repair and expansion of the highway, yet the road remains in disrepair. “The 330-kilometre stretch that connects South Andaman with Middle and North Andaman is now a corridor of hardship,” Bhasker told The Wave Aandaman, adding that the highway was in better condition when it was managed by the Andaman Public Works Department. He alleged that after the project’s transfer to NHIDCL, both the quality of work and the pace of progress deteriorated.

Sources said that the issue was first raised formally more than three years ago by former MP Kuldeep Rai Sharma. In a letter dated August 17, 2021, Kuldeep Rai Sharma, then the Member of Parliament representing the Andaman and Nicobar Islands, wrote to the Union Minister for Road Transport and Highways calling for the constitution of a high-level committee to review the NH-4 upgradation works. “The Andaman Trunk Road upgradation works began nearly five years back to transform road transport and bring happiness among residents,” Sharma wrote. “But people have suffered heavily due to delays, execution problems, and poor quality of works carried out by NHIDCL contractors.”

He warned that the road’s poor condition was endangering lives. “In many stretches there is mud and loose earth. Many accidents have taken place, and vehicles are suffering heavy damage on each journey,” the MP said in his letter, urging the ministry to intervene and ensure early completion of the project “so that islanders can finally reap the benefits of this mega project after suffering for more than five years.” Meanwhile, several prominent islanders have called for a CBI inquiry into the episode alleging corruption involving the contractor and senior officials of the Andaman and Nicobar administration who were in charge of monitoring the progress and performance of the project.  In March 2024, the Enforcement Directorate (ED) conducted search operations at multiple locations in Delhi, Hyderabad, Mumbai, Kurukshetra, and Kolkata at the premises of several companies, including Vasishta Constructions Pvt. Ltd., and their directors and partners. During these searches, the ED seized ₹2.54 crore in unexplained cash, reportedly found hidden inside a washing machine. The agency also confiscated various incriminating documents and digital devices, and froze 47 bank accounts linked to the companies under investigation.

The Wave Andaman has sought comments from Vasishta Constructions, Mantena Infra, RKEC Projects, and NHIDCL. This report will be updated if responses are received.