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1st-ever toll suspension after expressway defects

By Sohail Khan 17 September 2026, 5:38 pm

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Business News›Industry›Transportation›Railways›First-ever full toll suspension: Expressway develops major defects weeks after opening; NHAI bans concessionaire for 3 years, seeks Rs 42 lakh daily compensation

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First-ever full toll suspension: Expressway develops major defects weeks after opening; NHAI bans concessionaire for 3 years, seeks Rs 42 lakh daily compensation
Synopsis

Kanpur-Lucknow Expressway: Following the inauguration of the Kanpur-Lucknow Expressway, significant defects were reported, prompting the National Highways Authority of India (NHAI) to bar PNC Infratech from bidding for its projects for three years. Several sections of the expressway suffered premature failures, leading to the suspension of toll collection, while PNC Infratech is required to compensate NHAI for the lost toll revenue on a daily basis. The company’s shares also fell sharply after the NHAI action was disclosed.

PNC infratech share price — Kanpur-Lucknow Expressway develops defects weeks after opening; NHAI bars PNC Infratech for 3 years

The Kanpur-Lucknow Expressway, also known as the Awadh Expressway, has come under scrutiny after major defects, including premature failures and slippages, emerged within weeks of its inauguration. The National Highways Authority of India (NHAI) has now barred PNC Infratech, the project's concessionaire, from bidding for its projects for three years.

The three-year debarment is the maximum penalty permitted under the contract. PNC Infratech disclosed the NHAI action in a regulatory filing, following which its shares fell 20% on Tuesday.

Kanpur-Lucknow Expressway defects: What happened?

As per a report, several sections of the expressway developed premature defects, including slippages, soon after the road was opened. Officials had attributed the failures in some stretches to design-related issues and said that patchwork repairs would not be sufficient.

An earlier investigation commissioned by NHAI and conducted by a professor from IIT Kharagpur recommended complete reconstruction of the affected stretches.

A preliminary investigation also identified weak, highly plastic soil beneath parts of the expressway as one of the factors behind the premature failures. Such soil can undergo significant changes in shape and behaviour when its moisture content changes.

NHAI bans PNC Infratech for three years

According to PNC Infratech's regulatory filing, NHAI issued the debarment order on September 11. The order stated: “Company will not be able to participate in any entity of MoRTH/NHAI and their agencies for a period of three years.”

The company said the debarment would not affect its existing projects or their operation and maintenance. PNC Infratech and its concessionaire Awadh Expressway Private Ltd are evaluating legal remedies, according to the company's disclosures.

Kanpur-Lucknow Expressway toll suspended: Rs 42 lakh daily compensation

The case has also drawn attention 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 amount estimated at around Rs 42 lakh per day until the full corridor is ready.

The expressway was developed under the Hybrid Annuity Model (HAM), under which the private concessionaire has responsibilities related to the road's maintenance during the concession period.

PNC Infratech shares fall 20% after NHAI action

PNC Infratech's shares declined 20% on Tuesday after the company disclosed the NHAI debarment in its regulatory filing. The market reaction came as the action restricted the company's participation in future projects floated by NHAI, the Ministry of Road Transport and Highways (MoRTH) and their agencies.

Nitin Gadkari warns contractors over poor-quality road work

The action against PNC Infratech comes shortly after Union Road Transport and Highways Minister Nitin Gadkari said that strict action would continue against contractors and officials responsible for delays and poor-quality execution in infrastructure projects.

Speaking after inaugurating a six-lane elevated road corridor at Porvorim near Panaji, Gadkari said he wanted to "set a record" for blacklisting contractors and taking action against officials responsible for delays or substandard work.

Gadkari: ‘I want to set a record’ on blacklisting contractors

Gadkari said he had earlier expressed his embarrassment over the prolonged delay in widening the Mumbai-Goa Highway.

"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.

He added that he planned to travel along the highway in October and personally inspect the completed 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," Gadkari said.

Gadkari seeks better facilities along Mumbai-Goa Highway

Gadkari also asked the Goa government to develop roadside facilities along the Mumbai-Goa Highway that showcase the state's architecture, food and handicraft traditions.

He suggested that travellers should be able to experience Goan cuisine and purchase local handloom and handicraft products along the route.

The minister also proposed adding facilities for biofuels, electric vehicles and other alternative fuels alongside existing petrol and diesel pumps.

"If you make a request to me, I am ready to provide them to you," Gadkari said.

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