LUCKNOW: The National Highways Authority of India (NHAI) has barred PNC Infratech, the concessionaire of the Kanpur-Lucknow Expressway, from bidding for its projects for three years — the maximum penalty under the contract conditions.The debarment came after the expressway developed major defects, including premature failures and slippages at multiple locations within weeks of its inauguration. The company disclosed the NHAI action in a regulatory filing to the BSE on Tuesday, following which its shares fell 20%.NHAI issued the debarment letter on September 11, according to the company’s filing. “Company will not be able to participate in any entity of MoRTH/NHAI and their agencies for a period of three years,” it said.The company clarified that the order would not affect its ongoing projects and said it was exploring legal remedies against the debarment. It added that any financial implications would be disclosed once there was greater clarity.The Kanpur-Lucknow Expressway, also known as the Awadh Expressway, had reported premature failures, including slippages, soon after opening. Officials had earlier attributed the failures on some stretches to design issues and said patchwork repairs would not be sufficient. An investigation conducted for NHAI by a professor from IIT Kharagpur had recommended complete reconstruction of the affected stretches.The defects have raised concerns as the project was executed under the Hybrid Annuity Model (HAM), under which the private concessionaire is responsible for maintaining the road during the contract period.The project has also become the first case in which toll collection on an entire expressway has been suspended. PNC Infratech is required to compensate NHAI for the loss of toll revenue during the suspension, with the daily compensation estimated at around Rs 42 lakh until the entire corridor is ready.A preliminary investigation had identified weak and highly plastic soil beneath the expressway as one of the main reasons for the premature failures and slippages. Highly plastic soil can be easily moulded when wet.
