PNCINFRA

PNC Infratech declined 5.02% to Rs 241.78 on Thursday after the National Highways Authority of India (NHAI) issued show-cause notices over portions of the Kanpur-Lucknow Expressway affected by recent heavy rains. The company, however, clarified that it has neither been debarred nor classified as a "non-performer" by NHAI. According to an exchange filing, the notices were issued to Awadh Expressway Private Ltd, a subsidiary of PNC Infratech, after around 300 metres of the expressway—less than 0.5% of its total length—sustained damage due to prolonged and intense rainfall. PNC Infratech said most of the affected stretches have already been repaired or rectified, while restoration work on the remaining sections is in progress. The show-cause notices propose a penalty equivalent to 2% of the project's performance security, initiation of debarment proceedings against certain technical personnel for up to three years, and a downgrade in the concessionaire's Pavement Condition Index (PCI) rating. The company said it is in the process of submitting its responses to NHAI. The company further stated that the cost of repairs and rectification has already been accounted for under the concessionaire's routine maintenance obligations. It also maintained that the matter will have no material impact on its financial position, ongoing operations, or execution of other projects.