India plans contract overhaul to embed disaster resilience as report flags Rs 1.81 lakh crore infrastructure exposure
India is preparing to hardwire disaster resilience into infrastructure contracts and financing systems as a new report calls for mandatory risk assessments, redesigned contracts and new financing instruments to address rising climate risks.
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At the core of the recommendations is a structural shift in how infrastructure risk is defined and managed. The report proposes embedding resilience clauses directly into engineering, procurement and construction contracts and public-private partnership agreements, moving resilience from a design consideration to a legally enforceable obligation. It also calls for redefining force majeure provisions by linking them to measurable hazard thresholds such as wind speeds and flood levels, enabling clearer allocation of risk between governments and private developers.
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A comprehensive asset register developed for Odisha illustrates the scale of this gap. Using only publicly available data, the study estimates total public infrastructure exposure at Rs 1.81 lakh crore across 10 asset classes. State highways alone account for Rs 48,924 crore, followed by Rs 35,271 crore in major irrigation infrastructure and Rs 33,716 crore in primary schools. Hydropower assets are valued at Rs 24,410 crore, while secondary schools represent Rs 13,821 crore of exposure. Several critical categories including colleges, large dams, government buildings and renewable energy installations are either fully excluded or inadequately covered under existing disaster relief norms.
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