PNC Infratech: NHAI orders ₹3,582 cr, ₹485 cr award

Why PNC Infratech’s NHAI updates matter

PNC Infratech Ltd has reported a series of project wins and dispute resolutions linked to the National Highways Authority of India (NHAI), spanning awards, L1 bids, and arbitration outcomes. These updates are significant for investors tracking the company’s execution pipeline under the hybrid annuity mode (HAM) and its ability to recover dues in long-running EPC disputes. The disclosures cover multiple states including Uttar Pradesh and Bihar, with project scopes ranging from four-laning highway sections to building an additional bridge over the River Ganga.

₹3,582 crore LOAs for two UP four-laning projects (March 9, 2020)

In a filing to the BSE, PNC Infratech said it received letters of award (LOA) from NHAI on March 9, 2020 for two road-widening projects in Uttar Pradesh, together valued at ₹3,582 crore. One LOA relates to four-laning of the Aligarh-Kanpur section, Package-V, Mitrasen-Kanpur section of NH-91, executed on HAM under the Bharatmala Pariyojana. The stated package length covers from 356 km (design chainage 373.085 km) to 414 km (design chainage 433.728 km), with a bid project cost of ₹2,052 crore.

The other LOA, also dated March 9, 2020, covers the four-laning of the Jagdishpur-Faizabad section from 47.93 km (design chainage 47.8 km) to 107.68 km (design chainage 108.02 km) of NH-330A in Uttar Pradesh. This project too is on HAM under Bharatmala Pariyojana, with a bid project cost of ₹1,530 crore. The company repeated the same NH-330A project description in a separate filing within the provided material.

Another UP LOA: ₹1,412 crore Meerut-Nazibabad section (June 24, 2020)

PNC Infratech also disclosed receipt of an LOA on June 24, 2020 for an NHAI project valued at ₹1,412.0 crore in Uttar Pradesh. The project involves four-laning of a 53.95 km long section of NH-119 (New NH-34) under Bharatmala Pariyojana on HAM. The scope described includes segments from design chainage km 11+500 (Meerut) to 39.250 (Behsuma) and from km 79.500 (Bijnor) to 105.700 (Jalalabad).

The company noted that price bids were opened on May 13, 2020, with PNC’s bid being the lowest (L1). The project is to be constructed in 24 months and operated for 15 years post-construction. PNC Infratech also stated this was the eleventh hybrid annuity highway project secured by the company up to that point.

Arbitration win against NHAI: ₹485.28 crore award with 12% interest

Separately, PNC Infratech reported a legal outcome in its favour, with an arbitral tribunal awarding ₹485.28 crore related to a road construction project executed for NHAI in Uttar Pradesh. The arbitration concerned the “Construction of Balance work of new 4-lane Agra Bypass” EPC project, where disputes emerged during execution and led the company to initiate arbitration under the contract.

The tribunal comprised three former Supreme Court of India justices: Justice K.S.P. Radhakrishnan, Justice G.S. Singhvi, and Justice Dipak Misra. PNC Infratech said it had raised claims of ₹661.51 crore (including interest), while NHAI filed counterclaims of ₹38.52 crore. After deliberation, the tribunal rejected NHAI’s counterclaims and awarded ₹485.28 crore to PNC Infratech, along with annual interest of 12% from the date of the award until realisation.

L1 bidder signals: UP (2022) and Bihar greenfield packages (2023)

The company has also appeared repeatedly as an L1 (lowest) bidder on new NHAI projects. On February 26, 2022, PNC Infratech was declared the L1 bidder for a 32.98 km long project for four-laning of the Mathura Bypass to Gaju Village section of NH 530B in Uttar Pradesh, to be executed on HAM with a bid project cost of ₹885.0 crore. The disclosure stated construction is to be completed in 24 months with a 15-year operation period post construction.

On March 9, 2023, price bids were opened for two highway projects in Bihar where PNC Infratech was declared L1 with an aggregate bid project cost of ₹2,004.43 crore. The first is a 27.0 km stretch (km 27+000 to km 54+000) on the Greenfield Varanasi - Ranchi - Kolkata Highway under Bharatmala Pariyojana on HAM, with a bid project cost of ₹891.00 crore. The second is a 36.0 km stretch (km 54+000 to km 90+000) on the same greenfield corridor, with a bid project cost of ₹1,113.43 crore. Both projects are to be constructed in 24 months and operated for 15 years post construction.

2024 update: Ganga bridge project and execution pipeline numbers

On August 27, 2024, PNC Infratech was declared L1 bidder for a highway-cum-bridge project involving construction of an additional 3-lane bridge over the River Ganga to connect Buxar and Bharauli on NH-922 across Uttar Pradesh and Bihar. The company stated the project cost as ₹380 crore, with a construction period of 910 days and an operation period of 15 years post construction.

The same set of disclosures also highlighted execution pipeline numbers as of June 30, 2024. PNC Infratech said the remaining value of contracts under execution stood at over ₹14,100 crore. It also said the remaining value of contracts under execution, including contracts worth ₹4,994 crore where the company is the lowest bidder, stood at over ₹19,000 crore, which it described as over 2.5 times FY24 revenue.

Order wins under Bharatmala: ₹4,384 crore across three HAM projects

In another press-release style update included in the material, PNC Infratech said it won orders valued at ₹4,384 crore from NHAI after being L1 in three new HAM national highway projects. It said two of these were under Bharatmala Pariyojana for construction of six-lane upgradable to eight-lane Kanpur-Lucknow Expressway in Uttar Pradesh, for a combined value of ₹2,926 crore. The third order was to upgrade the Sonauli-Gorakhpur section of NH298 in Uttar Pradesh to four lanes, with the order value stated at ₹1,458 crore.

Key facts at a glance

What to watch next

Across the disclosures, the common thread is PNC Infratech’s repeated participation in NHAI’s Bharatmala-linked road buildout, particularly via HAM projects that include long operating periods. The arbitration award is a separate but material development because it addresses recovery on an EPC dispute where the tribunal rejected NHAI’s counterclaims and ordered interest at 12% per annum from the award date until realisation.

The next formal milestones on the project side typically follow from L1 declarations to issuance of LOAs and contract signing, while the arbitration outcome’s financial impact depends on the timeline of realisation specified by enforcement and payment processes.