Home / Business and Economy / NHAI Bans Contractor Over Kanpur-Lucknow Road Defects
NHAI Bans Contractor Over Kanpur-Lucknow Road Defects
17 Sep
Summary
- Expressway defects led to a three-year bidding ban for PNC Infratech.
- Toll collection halted, costing approximately Rs 42 lakh daily.
- NHAI action followed premature failures attributed to soil issues.
The Kanpur-Lucknow Expressway, also known as the Awadh Expressway, has experienced significant defects, including premature failures and slippages, within weeks of its inauguration. These issues have prompted the National Highways Authority of India (NHAI) to impose a three-year ban on the project's concessionaire, PNC Infratech, preventing it from bidding on future NHAI or Ministry of Road Transport and Highways (MoRTH) projects. This debarment is the maximum penalty allowed under the contract.
Investigations into the expressway's condition have revealed potential design-related issues and identified weak, highly plastic soil beneath affected stretches as a contributing factor to the premature failures. An initial probe recommended complete reconstruction of some segments. Meanwhile, toll collection on the entire expressway has been suspended, with PNC Infratech mandated to compensate NHAI for the lost revenue, estimated at approximately Rs 42 lakh per day.
The NHAI's stringent action against PNC Infratech aligns with Union Minister Nitin Gadkari's recent warnings about severe consequences for contractors and officials involved in poor-quality infrastructure work or project delays. Following the disclosure of the debarment, PNC Infratech's shares reportedly fell by 20%. The company is currently evaluating legal remedies.
