PNC Infratech Project: Kanpur-Lucknow Expressway Completes Construction Amid NHAI Scrutiny Over Maintenance Issues

PNC Infratech Project: Kanpur-Lucknow Expressway Completes Construction Amid NHAI Scrutiny Over Maintenance Issues​

PNC Infratech Limited has provided updates regarding its involvement in the Kanpur-Lucknow Expressway project, detailing the completion of construction and current operational status as the company addresses recent issues related to maintenance under National Highways Authority of India (NHAI) oversight.

The 'Construction of 6 lane upgradable to 8 lane of Kanpur Lucknow Expressway from km 28.500 to 73.744 (Package-2) in Uttar Pradesh on Hybrid Annuity' was completed by a subsidiary, Awadh Expressway Private Limited. Both the Provisional and Final Completion Certificates for the project were issued on October 1, 2025, and February 2, 2026, respectively. The total bid project cost for this segment is reported at Rs. 1513.00 Crore.

The project remains under a maintenance period of 15 years, as stipulated in the Concession Agreement (CA) between NHAI and the Concessionaire. This agreement covers both routine and major maintenance activities following construction completion.

Operational Challenges and Mitigation Efforts​

Recent operational challenges arose due to heavy and incessant rains affecting certain stretches of the expressway. The total affected length identified was 300 meters, which constitutes less than 0.5% of the entire length of the highway.

PNC stated that as part of its routine maintenance obligations, immediate steps were taken by the Concessionaire to repair and rectify most of the affected sections. Work on the remaining stretches is currently underway. Traffic flow on the project has been maintained smoothly, aligning with information provided in NHAI's Press Release dated August 5, 2026.

Regulatory Action by NHAI​

Despite the infrastructure delivery, PNC Infratech reported that NHAI issued show cause notices to the Concessionaire regarding these matters. An interim order was also issued by NHAI via a letter dated July 28, 2026, instructing the removal of the project manager, Mr. Vivek Gupta, from the Project Site.

The allegations concern a slippage of approximately 300 meters near km 64 (RHS) of the project observed on July 26, 2026.

NHAI has indicated potential actions against the Concessionaire, including:

• Levying a penalty equivalent to 2% of the performance Security.
• Initiating debarment proceedings for specific technical staff (Head of pavement/Highways) for up to three years.
• Downgrading the Concessionaire's Rating on the Pavement Condition Index.

PNC Infratech confirmed that replies to these show cause notices are being submitted to NHAI shortly.

Financial and Operational Outlook​

Regarding the impact of these incidents, PNC stated that the costs for ongoing repairs and rectification have been budgeted by the Concessionaire as part of its routine maintenance commitments over the 15-year post construction period. The company noted there is no material impact on its ability to continue as a going concern or on the execution of other projects.

PNC Infratech maintained that it has not been debarred or declared a 'non-comer' by NHAI, and the safety and quality standards are central to how the company conducts business and operates infrastructure assets nationwide.

MCLOUD Stock Price Movement​

Shares of Magellanic Cloud Limited are shedding value as of 9:20 AM, dipping to ₹28.77 after a loss of 0.07%. The stock is currently trading near the day's low of ₹28.73 amid a volume of 16,857 shares.