Major Setback for NCC as NHAI Imposes Ban

The National Highways Authority of India (NHAI) has dealt a major setback to NCC Limited. NHAI has barred NCC and its subsidiary, OB Infrastructure Limited (OBIL), from participating in any of its tenders or contracts for a period of two years. NCC informed regulatory authorities that the ban came into effect from the 17th of this month. The action was reportedly taken due to delays in the execution of a road project constructed under the Build-Operate-Transfer (BOT) model in Uttar Pradesh.

However, NCC has contended that the delay occurred due to NHAI’s failure to provide the required land on time. The company initiated arbitration proceedings over the matter, and in November 2024, the arbitration tribunal ruled in favor of NCC. Despite this, NHAI challenged the tribunal’s order in the Delhi High Court. While the case remains pending, NCC has stated that NHAI proceeded with the ban unilaterally.