The National Highways Authority of India (NHAI) has imposed its maximum contractual penalty on PNC Infratech, debarring the company from participating in bids floated by NHAI, the ministry of road transport and highways (MoRTH) and their executing agencies for three years over structural failures on the newly opened Kanpur-Lucknow Expressway.
PNC Infratech, promoter of concessionaire Awadh Expressway Pvt Ltd, received the debarment order on September 11, according to its regulatory filing. The company said it was evaluating legal remedies and that the order would not affect its existing projects or their operation and maintenance.
The action follows serious defects on the 63-km, six-lane expressway, built at a cost of around ₹4,200 crore. Within weeks of its inauguration, a roughly 300-metre section of the road suffered slippage near km 64 on July 26, forcing NHAI to divert traffic, suspend toll collection and order a comprehensive technical assessment.
A senior NHAI official in Lucknow confirmed the debarment, saying the order had been issued by the authority’s headquarters in Delhi. “We are not supposed to speak over it,” the official said.
The penalty has also put the spotlight on the project’s quality-control chain, including geotechnical investigations, design, construction, independent engineering supervision and NHAI oversight. NHAI had earlier indicated that disciplinary action was being initiated against stakeholders found responsible for deficiencies in execution and supervision.
{{/usCountry}}The penalty has also put the spotlight on the project’s quality-control chain, including geotechnical investigations, design, construction, independent engineering supervision and NHAI oversight. NHAI had earlier indicated that disciplinary action was being initiated against stakeholders found responsible for deficiencies in execution and supervision.
{{/usCountry}}An initial preliminary assessment by IIT Kharagpur had recommended complete reconstruction of the affected stretches, indicating that routine patchwork would not adequately address the underlying problem. The institute’s final report, however, is still awaited.
NHAI has directed the concessionaire to carry out rectification at its own cost. A senior official said the estimated cost of the initially identified affected works was around ₹3 crore. The concessionaire is also required to compensate NHAI for revenue lost during the toll suspension, with the daily compensation estimated at about ₹42 lakh.
The three-year debarment prevents PNC Infratech from bidding for new projects of NHAI, MoRTH and their executing agencies during the period, while its existing projects and their operation and maintenance remain unaffected.