India penalizes highway construction firms for structural failures

India’s Ministry of Road Transport and Highways has invoked a new ‘catastrophic failure’ provision against two highway construction entities following major structural failures and accidents. Under these regulations, responsible companies can be barred from participating in new project tenders for two years and will receive negative ratings, impacting their ability to secure future government contracts.

The first case involves a project on National Highway-45 (new NH-32) in Tamil Nadu, specifically the Poondiankuppam-Sattathnapuram section. The project, valued at 2,120 crore rupees and managed by M/s Poondiankuppam Sattathnapuram Section Private Limited (promoter: M/s Oriental), experienced a significant failure when a section of the road subsided by approximately two meters on April 6, 2026.

The second case concerns a project on NH-727B near Nawalpur in Uttar Pradesh, involving the widening and strengthening of a 45-kilometer stretch. This contract, valued at 613 crore rupees, was awarded to a joint venture between VRC Constructions (India) Private Limited and R&C Infra Engineers Private Limited. The ministry's action follows a major accident on March 25, 2026, during the construction of a large bridge viaduct over the Ghaghara River.