PNC Infra and two of its subsidiaries have received relief from Ministry of Road Transport and Highways (MoRTH) regarding participating in tender process, with the Ministry significantly reducing the period of disqualification, the company informed stock exchanges on February 10. Shares of PNC Infra were higher by more than 7% in early following the update.
MoRTH's order on PNC Infra dated February 6, 2025 conveyed the reduction in the period of disqualification (debarment) from one year to four months from the date of original debarment order dated October 18, 2024, subject to NHAI procedures.
The reduced curb on bidding implies the order by MoRTH ends in February 2025, four months after the order was passed.
MoRTH had disqualified the company and two of its subsidiaries from participating in tender process of the Ministry for a period of one year with effect from October 18, 2024, a decision which was later challenged by the company.
The Delhi High Court had subsequently dismissed by the order on October 29, 2024, and PNC Infra submitted a representation to the MoRTH on November 21, 2024 seeking revocation of the disqualification order.
"In response to the above, MoRTH vide its order dated 06.02.2025 reduced the period of disqualification (debarment) from I year to 4 months from the date of original debarment order i.e. 18.10.2024 subject to completion of certain procedures with NHAI," the company said in a statement on February 7.
Late last year, the Delhi High Court had directed MoRTH and NHAI to consider revocation of the earlier disqualification order against the company within four weeks.
With the order, the appeal by PNC Infra has been disposed of, and there will be no business hit due the disqualification order on the company, PNC Infra had said in December 2024. "There will not be any impact on the ongoing development, construction, operations and maintenance activities of the company and its subsidiaries, including the two SPVs on account of the aforesaid order..."
As of September 30, the company’s unexecuted order book stands over Rs 19,900 crore, higher than its market capitalisation, with three EPC contracts for aggregate value of Rs 6,670 crore. PNC Infratech has a market capitalisation of nearly Rs 8,000 crore, and the shares are down by 4% so far this year, and 20% over last one year.
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