Expressway develops major defects weeks after opening; NHAI imposes maximum 3-year ban on concessionaire, first-ever full toll suspension and Rs 42 lakh daily compensation
Taking a stern view, the National Highways Authority of India (NHAI) has barred PNC Infratech, the concessionaire for the Kanpur-Lucknow Expressway, from bidding for its projects for three years. This is the maximum penalty allowed under the contract. PNC Infratech’s shares fell 20% on Tuesday after the company disclosed the debarment in a regulatory filing to the BSE.The project, also known as the Awadh Expressway, has faced serious defects, including premature issues such as slippages that appeared within weeks of its inauguration.Officials had attributed the failures on some sections to design issues and said patchwork alone would not address the problem. An earlier investigation commissioned by NHAI and conducted by a professor from IIT Kharagpur had recommended completely rebuilding the affected stretches.According to PNC Infratech’s filing, NHAI issued the debarment order on September 11. The order said, “Company will not be able to participate in any entity of MoRTH/ NHAI and their agencies for a period of three years.” NHAI also said the penalty would not affect the company’s ongoing projects. PNC Infratech said it was examining legal remedies and would disclose any financial impact once there was greater clarity.The damage to several sections has raised concerns because the expressway was developed under the Hybrid Annuity Model (HAM), under which the private concessionaire is responsible for maintaining the road during the contract period.The case is also notable because toll collection across the entire expressway has been suspended. PNC Infratech is required to compensate NHAI for the toll revenue lost during the suspension, with the daily amount estimated at around Rs 42 lakh until the full corridor is ready.A preliminary investigation had identified weak, highly plastic soil beneath the expressway as one of the main reasons for the premature failures, particularly the slippages. Plastic soil refers to soil that can be easily moulded when it is wet.
Gadkari’s Stern Warning
Last week, Union Road Transport and Highways Minister Nitin Gadkari said he wants to “set a record” for blacklisting contractors involved in poor-quality work and suspending officials responsible for delays.Gadkari said he had previously expressed his embarrassment over the prolonged delay in widening the Mumbai-Goa Highway. He now plans to travel on the highway in October and inspect the completed work himself.He made the remarks after inaugurating a six-lane elevated road corridor at Porvorim near Panaji.Gadkari said that he intended to take action against as many contractors and officials as possible within a year where delays or poor-quality execution were found in infrastructure projects.“I had announced (earlier) that I would not come for the inauguration of the (widened) Mumbai-Goa highway because I felt ashamed that it had been delayed so much,” he said.The minister said action against contractors and officials would continue where infrastructure projects suffer from delays or substandard work.“Now I want to set a record of blacklisting the maximum number of contractors and taking action against them, as well as suspending officials, within a year. I am not going to stop doing this now,” he said.Gadkari also asked the Goa government to create roadside facilities along the Mumbai-Goa highway that showcase the state’s architecture, food and handicraft traditions.According to him, travellers should be able to sample Goan cuisine and buy local handloom and handicraft products while passing through the state, giving the journey a distinct Goan experience.He also suggested setting up facilities for biofuels, electric vehicles and other alternative fuels alongside existing petrol and diesel pumps on the route.“If you make a request to me, I am ready to provide them to you,” Gadkari said.
