The Postal Highway Directorate has terminated the contract for constructing the 22.66-kilometer Inaruwa–Kaptanganj section in Sunsari, citing extremely slow progress. The contract—worth Rs 527 million and awarded in January 2022—had achieved only about 18 percent completion. After repeated warnings went unheeded, the Directorate canceled the agreement and initiated the process to seize the contractor’s Rs 169.4 million performance bond and recover advance payments with 10 percent interest.
