Shares of NCC Limited dropped nearly 10% during trading on Thursday following a two-year debarment order issued by the National Highways Authority of India (NHAI) to the company and its subsidiary. This decline led the stock to hit its lowest point in a year, falling 9.85% on the National Stock Exchange to Rs 135 per share.
The regulatory action against NCC and its step-down subsidiary was disclosed in an exchange filing. Both NCC and OB Infrastructure Limited (OBIL) have been barred by NHAI from participating in any NHAI tenders, bids, or proposals for two years. This restriction covers various roles such as concessionaire, contractor, and consortium member and is effective from February 17, 2026.
The debarment is related to a highway project in Uttar Pradesh managed by OBIL under a 2006 concession agreement. NCC attributed project delays to NHAI’s land handover delays and alleged contract breaches. Despite OBIL initiating arbitration and receiving a favorable award in November 2024, NHAI has contested the award in the Delhi High Court. Additional disputes from the same project are also undergoing arbitration.
NCC clarified that while its current orders and projects remain unaffected, the ban’s impact on future NHAI projects participation for two years is uncertain. OBIL has criticized the debarment order, claiming it was issued during ongoing arbitration and after the concession period had ended. The company plans to legally challenge the debarment.
