New Delhi: National Highways Authority of India (NHAI) has barred the concessionaire of Kanpur-Lucknow Expressway, PNC Infratech, from bidding for any of its projects for three years, the maximum punishment as per contract conditions. The company’s share dipped by 20% on Tuesday after the company, in a regulatory filing, informed the BSE about the debarment by the highways authority.The expressway project known as Awadh expressway had developed major defects, including premature failures such as slippages within weeks of its inauguration. Officials had earlier said that the premature failures on sections of the expressway was due to design failure while adding that mere patchwork won’t be sufficient. Earlier, an investigation for NHAI by a Kharagpur IIT professor had recommended complete reconstruction of affected stretches.As per the company’s regulatory filing, NHAI issued the debarment letter on Sept 11. It said, “Company will not be able to participate in any entity of MoRTH/ NHAI and their agencies for a period of three years.” It also clarified that the action will not impact ongoing projects and said it is exploring legal remedies against the order, adding that any financial implications will be disclosed as clarity emerges.Officials have admitted that the premature failures and damages at multiple locations is a matter of concern considering that the project has been executed under Hybrid Annuity Model (HAM) where the private player has the responsibility to maintain it for the contract period.This is also the first such case where tolling on the entire expressway has been suspended and the concessionaire has to compensate NHAI for loss of toll revenue for this period and the daily compensation is estimated around Rs 42 lakh until the entire corridor is fully ready.It can be recalled that the preliminary investigation had found use of weak and highly plastic soil beneath the expressway as to be one of the main reasons for premature failures (slippage). Plastic soil is soil that can be easily moulded when wet.
