PNC Infratech Limited has formally accepted a Rs. 234.72 crore settlement offer from the National Highways Authority of India (NHAI). This settlement concludes an arbitration award concerning the Agra Bypass Project under the Vivad-se-Vishwas III scheme. The company expects a positive financial impact of Rs. 234.72 crore plus an additional Rs. 0.27 crore in accrued interest, marking a significant resolution for the firm.
Resolution Under Government Scheme
Following a recent government directive, PNC Infratech has successfully reached an amicable settlement for the Agra Bypass Project. The dispute, which originated from an earlier arbitration award, is now being settled through the Vivad-se-Vishwas III (Contractual Disputes) Scheme. This initiative allows for the resolution of long-standing contractual disagreements, providing clarity and financial closure for infrastructure companies.
Settlement Details
The settlement amount of Rs. 234.72 crore is based on 45% of the net arbitration award. In addition to the base figure, the company is entitled to 9% per annum simple interest for the period following the initial 30 days of the award’s publication. As of the acceptance date on May 5, 2026, this includes an extra Rs. 0.27 crore in interest calculated for the beginning of May.
Next Steps and Financial Impact
With the acceptance of the offer on May 5, 2026, the process now moves to the formal execution of a settlement agreement between the company and the NHAI. Following the signing of this agreement, the NHAI is committed to releasing the payment to the company within a period of 30 days. This resolution represents a positive financial outcome for the company, strengthening its liquidity position and concluding the pending litigation regarding this specific EPC contract.
Source: BSE
