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NCC & Subsidiary Face NHAI Blacklisting
18 Feb
Summary
- NCC Ltd and its subsidiary OBIL debarred from NHAI tenders for two years.
- Debarment effective February 17, 2026, for non-compliance on Uttar Pradesh projects.
- NCC states no financial impact on current orders or ongoing projects.
Infrastructure firm NCC Ltd announced on February 18, 2026, that it and its step-down subsidiary, OB Infrastructure Ltd (OBIL), have received a debarment order from the National Highways Authority of India (NHAI).
The order prohibits both entities from engaging in any tenders, bids, or proposals issued by NHAI for a period of two years, commencing February 17, 2026. This action is connected to a project for the design, construction, and operation of sections of NH-25 and NH-2 (New NH-27) in Uttar Pradesh, executed by OBIL under a concession agreement from April 27, 2006.
OBIL cited delays by NHAI in land handover and other breaches, leading to project delays and favorable arbitration awards for OBIL on November 20, 2024. NHAI has challenged these awards in Delhi High Court. NHAI initiated debarment proceedings while arbitration was ongoing regarding further disputes.
NCC stated that the debarment order was issued without OBIL being given an opportunity to be heard and that the company intends to challenge it. NCC also confirmed that the debarment will not affect its current order book or ongoing projects, though future tender opportunities remain uncertain.
