PNC Infratech Limited has issued clarifications regarding the Kanpur-Lucknow Expressway Project following NHAI’s press release and media reports. The company confirmed that a 300m stretch of the project was affected by heavy rains, but most repairs are complete, and traffic is plying smoothly. NHAI has issued show cause notices to the concessionaire, Awadh Expressway Private Limited, which PNC Infratech is a subsidiary of, and the company stated there is no material impact on its ability to continue as a going concern.
PNC Infratech Addresses Project Clarifications
PNC Infratech Limited has provided clarifications concerning the Kanpur-Lucknow Expressway Project, following a press release from the National Highways Authority of India (NHAI) dated August 5, 2026, and subsequent media reports. The company is addressing concerns raised about the project’s status and its operational continuity.
Project Details and Status Update
The project, which involved the construction of a 6-lane upgradable to 8-lane expressway from km 28.500 to 73.744 (Package-2), was completed with Provisional and Final Completion Certificates issued on October 1, 2025, and February 2, 2026, respectively, to Awadh Expressway Private Limited, a subsidiary of PNC Infratech. The Bid Project Cost for this segment was ₹1513.00 Crore.
PNC Infratech confirmed that due to recent heavy rains, approximately 300 meters of the expressway, representing less than 0.5% of the total length, was affected. The concessionaire has undertaken immediate actions for repairs, with the majority of affected stretches already rectified and work on the remaining ones in full swing. Traffic on the expressway is reported to be plying smoothly, as also mentioned in NHAI’s press release.
NHAI Show Cause Notices and Company’s Position
NHAI has issued show cause notices to the concessionaire, Awadh Expressway Private Limited, proposing actions such as a penalty of 2% of the Performance Security, initiating debarment proceedings against specific technical staff, and downgrading the Concessionaire’s Rating. Replies to these notices are being submitted by the concessionaire.
PNC Infratech clarified that it has not been ‘debarred’ or declared a ‘non-performer’ by NHAI. The company emphasized its commitment to safety and quality in all its projects.
Financial and Operational Impact
The cost of ongoing repairs and rectification of affected stretches has been budgeted for by the concessionaire as part of its routine and maintenance obligations over the 15-year post-construction period, as per the Concession Agreement. PNC Infratech stated that there is no material impact on the Company’s ability to continue as a going concern or on the execution of its other projects. The company also affirmed its ability to continue participating in bidding for new projects.
Source: BSE
