Stock Alert: The company suffered a major setback, NHAI imposed a two-year moratorium, and will not receive any tenders.:As per Annexure-A, this ban prohibits the company from participating in any tender/bid/RFP issued by NHAI as concessionaire, contractor, EPC contractor, O&M contractor, O&M agency or consortium member.

News Topical, Digital Desk : Infrastructure company NCC Limited has been dealt a major blow by the National Highways Authority of India (NHAI). The company and its step-down subsidiary OB Infrastructure Limited (OBIL) have been barred from participating in any tender or bidding process of NHAI for two years from February 17, 2026. This order was issued by the National Highways Authority of India (NHAI) on February 17, 2026.

Which works are prohibited?

According to Annexure A, this ban prevents the company from participating in any tender/bid/RFP issued by NHAI as a concessionaire, contractor, EPC contractor, O&M contractor, O&M agency or consortium member. Which project is the case related to?

This action relates to the project developed on a BOT (Annuity) basis on the Orai–Bhognipur and Bhognipur–Barah sections of NH-25 and NH-2 (new NH-27) in Uttar Pradesh, which OBIL executed under a concession agreement (April 27, 2006).

The company claims that the project was delayed due to delays in land transfer and other contract violations by NHAI.
OBIL initiated arbitration in this matter and received a favorable award on November 20, 2024, which NHAI has challenged in the Delhi High Court.

The company claims that the debarment order was issued in violation of natural justice principles, without providing an opportunity for a hearing. This will be legally challenged.

What will be the impact?
The company has clarified that this order will have no business or operational impact on the existing order book and ongoing projects. However, there may be a potential impact on new tender opportunities during the debarment period. At present, its financial impact cannot be estimated.