The Ministry of Road Transport and Highways has asked states to waive stamp duty on national highway projects to reduce compliance issues, prevent contractual disputes and speed up infrastructure development in India.
According to a report by The Economic Times published on October 15, 2026, several states, including Uttar Pradesh, Madhya Pradesh, Karnataka and Odisha, want stamp duty to be linked to the value and type of project. Stamp duty rates currently range from 0.25% to 3% across states, while Uttar Pradesh has reportedly sought a rate of up to 12% for toll-operate-transfer (TOT) projects.
The ministry believes that different stamp duty rules across states can create financial uncertainty for highway developers and concessionaires. These differences may also lead to disagreements, delays in project approvals and difficulties in finalising funding for large infrastructure projects.
Currently, the National Highways Authority of India (NHAI) generally executes highway development contracts using stamp paper worth ₹100. The ministry argues that additional state-level charges on these agreements could increase costs without providing substantial additional value to highway development.
The issue is particularly important for public-private partnership (PPP) projects, which require long-term financial planning and investor confidence. Unclear or varying tax and duty requirements can affect project costs and investment decisions.
The government is seeking a more uniform approach to stamp duty across national highway projects. However, states are concerned about losing an important source of revenue.
A clear policy decision could help reduce disputes, improve financial planning and support faster execution of India’s national highway infrastructure projects.
