NHAI Bars NCC Limited and OB Infrastructure from Bidding for Two Years

NCC Limited informed exchanges that NHAI has debarred it and its subsidiary OB Infrastructure from participating in NHAI tenders for two years effective February 17, 2026. The company stated there is no impact on existing orders or ongoing projects and plans to challenge the order legally.

Hyderabad, February 18, 2026: NCC Limited has informed stock exchanges that it, along with its step-down subsidiary O B Infrastructure Limited (OBIL), has received an order of debarment from the National Highways Authority of India (NHAI).

According to the company’s regulatory filing dated February 18, 2026, NHAI has barred OBIL and NCC Limited from participating in any tender, bid, or Request for Proposal (RFP) issued by the authority for a period of two years, effective February 17, 2026.

The disclosure was made under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Scope of Debarment

As per the communication issued by NHAI on February 17, 2026 (received at 6:08 PM), the debarment restrains OBIL and NCC Limited from participating in projects issued by NHAI in any capacity, including:

Concessionaire
Contractor
EPC Contractor
O&M Contractor
O&M Agency
Consortium Member

The action has been taken under the Ministry of Road Transport and Highways (MoRTH) Policy in connection with the BOT (Annuity) highway project covering:

Km 220.000 to Km 255.000 of the Orai–Bhognipur Section on NH-25
Km 421.200 to Km 449.000 of the Bhognipur–Barah Section on NH-2 (New NH-27)
Located in Uttar Pradesh

The project was executed by OBIL under a Concession Agreement dated April 27, 2006.

Arbitration and Legal Dispute Background

NCC stated that OBIL had constructed and maintained the project as per the concession agreement. However, the company contends that delays occurred due to delay in land handover and other breaches allegedly attributable to NHAI.

OBIL initiated arbitration proceedings against NHAI and received a favorable arbitral award dated November 20, 2024. NHAI has challenged the award before the Hon’ble High Court of Delhi, where the matter is currently pending.

Additionally, OBIL initiated fresh arbitration proceedings in September 2025 concerning other disputes related to execution and maintenance of the same project.

The company has stated that the present debarment order was issued during the pendency of arbitral proceedings and after completion of the concession period, allegedly without providing an opportunity of being heard. OBIL intends to challenge the debarment order as per applicable law.

Financial and Operational Impact

NCC Limited clarified in its exchange filing that:

There is no financial or operational impact on the existing order book or ongoing projects.
The impact on future tenders will depend on business opportunities arising during the debarment period.
At present, no quantifiable financial impact can be determined.

The board meeting reference number for the disclosure is NCCL/Reg30/Debarment dated February 18, 2026.