STRUCTURAL FAILURES PUT TWO HIGHWAY PROJECT DEVELOPERS UNDER THREAT OF TWO-YEAR BLACKLIST
October 18, 2026
NEW DELHI, OCTOBER 18: The Union Ministry of Road Transport and Highways has invoked a newly introduced catastrophic failure provision against two highway developers following major structural failures on National Highways projects, potentially barring them from bidding for new projects for two years.
The provision allows highway-owning agencies to prohibit developers associated with catastrophic project failures from participating in new tenders for two years. The developers may also receive negative ratings, affecting their prospects of securing future contracts.
The first case concerns the four-lane Poondiankuppam–Sattanatharupam section of National Highway 45, now designated NH-32, in Tamil Nadu. The project, awarded to Poonadinkuppam Sattanathapuram Section Private Limited, promoted by Oriental, had a bid project cost of ₹2,120 crore.
According to the ministry’s order, on April 6, 2026, a substantial settlement of approximately two metres was observed in the pavement concrete on the main carriageway near a light vehicle underpass on the Kollidam Bypass. The incident also involved bulging, cracking and horizontal displacement of the reinforced earth structure.
The second case concerns the widening and strengthening of approximately 45 kilometres of NH-727B in Uttar Pradesh, between Nawalpur and Sikanderpur. The ₹2,061-crore sanctioned project was awarded to a joint venture of VRC Constructions (India) Private Limited and R & C Infra Engineers Private Limited for a contract price of ₹613 crore.
On March 25, 2026, during reinforcement work on a major bridge over the Ghaghra river, a reinforcement cage collapsed while being lifted and erected for a viaduct pier. The collapse killed two workers and left another person grievously injured.
The ministry’s action brings the consequences of serious infrastructure failures into sharper focus, with developers potentially facing both a two-year bidding ban and reputational penalties that could affect their future participation in highway construction projects.
