3 weeks ago
PNC Infratech Shares Tumble 6% After NHAI Suspends Toll Collection
A big road called the Kanpur-Lucknow Expressway in India got damaged after very heavy rain.
The government group in charge of highways, called NHAI, stopped letting drivers pay tolls on that road.
NHAI said the company that takes care of the road, PNC Infratech, has to pay back the money lost from not collecting tolls.
When people heard this news, the company's share price went down by about 6%.
The company said only a tiny part of the road, about 300 metres, was damaged.
That is less than half of one percent of the whole expressway.
PNC Infratech said workers already fixed most of the damaged part and are still fixing the rest.
The company also said it was not banned from taking part in future road projects.
It said the repairs will cost about 3 crore rupees, which is already part of its maintenance budget.
PNC Infratech says the problem will not stop it from doing business.
PNC Infratech's shares fell about 6% after the National Highways Authority of India (NHAI) suspended toll collection on the Kanpur-Lucknow Expressway.
NHAI said the toll revenue lost during the suspension period would be recovered from PNC Infratech.
PNC Infratech said recent heavy rains affected isolated stretches totaling 300 metres, less than 0.5% of the entire expressway, with most of it already repaired.
The company denied reports that it had been declared a non-performer or debarred by NHAI, saying it is submitting formal replies to the notices issued.
Repair costs, estimated at around Rs 3 crore, were already accounted for in the company's routine maintenance budget, and PNC said the issue would have no material impact on operations or new bidding.
- Who
- PNC Infratech, the expressway concessionaire, and the National Highways Authority of India (NHAI)
- What
- NHAI suspended toll collection on the Kanpur-Lucknow Expressway after rain damage and said lost toll revenue would be recovered from PNC Infratech, whose shares fell about 6%
- Where
- Kanpur-Lucknow Expressway, India
- When
- Recently, following heavy and incessant rains; exact dates are not specified in the article
- Why
- Heavy rains damaged isolated stretches of the expressway, prompting NHAI to keep toll collection on hold until repairs are completed
PNC Infratech's position
NHAI's position
Extent of damage
PNC Infratech's position
PNC says only 300 metres (less than 0.5% of the expressway) was affected by heavy rains, with most of the stretch already repaired and maintenance continuing on the rest.
NHAI's position
NHAI kept toll collection on hold until repairs are completed and said the lost toll revenue would be recovered from PNC Infratech, indicating it treated the damage as serious enough for suspension.
Non-performer status
PNC Infratech's position
PNC Infratech denies that it has been debarred or declared a non-performer, and says it is submitting formal replies to the notices issued by NHAI.
NHAI's position
Reports claim NHAI tagged the company as a non-performer, a status that could make it ineligible to bid for future projects if upheld.
Key facts
- Company
- PNC Infratech
- Authority
- National Highways Authority of India (NHAI)
- Project
- Kanpur-Lucknow Expressway
- Share price reaction
- Fell about 6%
- Affected stretch
- 300 metres (less than 0.5% of the expressway)
- Estimated repair cost
- Around Rs 3 crore
- Toll collection status
- Suspended until repairs on the affected stretch are completed
- Company response
- Submitting formal replies to NHAI notices; denies non-performer or debarment status
Quotes
PNC Infratech company spokesperson
Representative of PNC Infratech
“As part of the routine maintenance obligations, the concessionaire took immediate actions/measures and repaired/rectified the majority of affected stretches and maintenance works on the remaining few stretches are already underway in full swing.”
businesstoday.in
Sources
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