The Nagaland government has amended its contractor registration framework, introducing higher eligibility thresholds.
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KOHIMA — The Government of Nagaland has amended its contractor registration framework, replacing the Nagaland Registration of Contractors Rules, 1966, with a revised set of rules that introduces higher eligibility thresholds, revised fee structures, and a simplified classification system.
According to a notification dated February 20, 2026, issued by the Works and Housing Department (Works Branch) and accessed by Eastern Mirror, the new Nagaland Registration of Contractors’ Rules, 2025, have come into force with immediate effect.
Under the revised rules, the earlier multi-tier classification of contractors has been reduced to three categories: Class-I A, Class-I, and Class-II.
As per the new provisions, Class-I A contractors are eligible to undertake works of any value, and Class-I contractors can bid for projects up to INR 100 crore, while Class-II contractors can take up works up to INR 50 lakh.
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The new rules also revise the fee and deposit structure. The non-refundable application fee has been fixed at INR 10,000 for Class-I A, INR 5,000 for Class-I, and INR 2,000 for Class-II.
In addition, contractors are required to furnish refundable registration deposits in the form of fixed deposit receipts. For Class-I A, the deposit has been set at INR 10 lakh for indigenous contractors and INR 20 lakh for non-indigenous contractors.
For Class-I, indigenous contractors are required to deposit INR 2 lakh, while non-indigenous contractors must furnish INR 4 lakh. In the case of Class-II, the deposit stands at INR 50,000 for indigenous contractors and INR 1 lakh for non-indigenous contractors.
Compared to the earlier framework, both the application fees and security deposits have been increased substantially. Under previous provisions, application fees ranged between INR 100 and INR 500, while security deposits and earnest money requirements were significantly lower, generally between INR 20,000 and INR 75,000 depending on the category.
The revised rules also lay down more detailed qualification criteria. Contractors applying under Class-I A are required to have executed road and bridge works worth INR 100 crore and building works worth INR 40 crore over the past three years, along with an annual turnover of INR 35 crore and a net worth of INR 13 crore.
For Class-I registration, contractors must have completed road works worth INR 10 crore and building works worth INR 5 crore during the same period, with a turnover of INR 5 crore and net worth of INR 2 crore. Class-II applicants are required to have completed works worth INR 50 lakh and furnish a bank solvency certificate of INR 25 lakh.
The rules also make compliance requirements more explicit, including GST registration, EPF accounts, audited financial statements, and proof of adherence to labour laws. At the same time, provisions have been included to allow unemployed civil engineering graduates and diploma holders to register under Class-II, subject to certain conditions.
An Expert Technical Committee (ETC), headed by the engineer-in-chief of the Nagaland Public Works Department (NPWD), has been constituted to vet applications, recommend approvals, and examine cases related to disputes and blacklisting.
The rules make it mandatory for contractors to be registered with the NPWD to be eligible for state-funded works. Registration will be valid for a period of up to 10 years, after which renewal will be required.
Provisions for blacklisting and cancellation have also been detailed. Contractors may face blacklisting for non-performance, submission of false information, violation of labour laws or unethical practices, with a minimum debarment period of three years.
A procedure for verifying and issuing show-cause notices has also been laid down.
According to data furnished by the Engineer-in-Chief’s office to Eastern Mirror dated February 23, 2026 under the Right to Information (RTI) Act, Nagaland currently has 2,351 registered contractors, including 2,115 Class-I, 159 Class-II and 77 Class-III contractors.
The revised rules mark a departure from the earlier system, which classified contractors from Class-I to Class-V with comparatively lower financial limits. As per amendments issued in 1990, tender values for lower categories ranged from INR 1 lakh to INR 4 lakh, reflecting a much smaller scale of works at the time.