KNR Constructions' arm resolves NH-66 issues in Kerala with NHAI; penalties and debarment waived

Infrastructure firm KNR Constructions Ltd on Thursday (October 16) said its subsidiary, KNR Ramanattukara Infra Private Ltd (KRIPL), has entered into a Settlement Agreement with the National Highways Authority of India (NHAI) on October 16, 2025.

Under the agreement, KNR Ramanattukara Infra Private will construct a 377-meter-long viaduct at its own cost and complete the work by February 28, 2026, including a 90-day grace period. NHAI has agreed to grant an extension of time without imposing damages for the project.

The provisional completion certificate for the project, excluding the viaduct stretch, is expected to be issued on July 18, 2025, without any penalties. As part of the settlement, KRIPL and its promoters agreed not to participate in NHAI bids until November 30, 2025. In return, NHAI has agreed to drop all penalty and debarment proceedings against KRIPL and its promoters.

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Back in May 2025, NHAI had disallowed KNR Constructions Ltd from participating in ongoing and future bidding forthwith after the failure of the reinforced earth wall on the Ramanattukara-Valanchery Section of NH-66 in Kerala.

An incident of settlement of embankment and failure of RE Wall was reported on the Ramanattukara-Valanchery Section of NH-66 in Kerala on 19th May 2025, when the project was nearing completion. KNR Constructions Ltd was the concessionaire of the project.

"Taking strict action against the Concessionaire, NHAI has disallowed M/s KNR Constructions Ltd from participating in ongoing/ future bidding forthwith," the state-owned agency said in a statement.

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Prima facie, the statement said the incident occurred due to the negligence of the concessionaire to confirm the ground conditions and improve ground bearing capacity prior to the commencement of work.

According to the statement, the project consultant, Highway Engineering Consultant, has also been disallowed from participating in ongoing/ future bidding. The Project Manager of the concessionaire and the team leader of the consultant have also been suspended from their duties, it added.

Shares of KNR Constructions Ltd ended at ₹186.30, up by ₹0.45, or 0.24%, on the BSE.