Shares of KNR Constructions are expected to be in focus on Friday after the National Highways Authority of India (NHAI) announced a ban on the company from participating in both ongoing and future road contract bidding. The decision comes in the wake of a structural failure on the Ramanattukara-Valanchery Section of NH-66 in Kerala.
According to NHAI, the incident occurred on May 19, 2025, as the project neared completion. The embankment and reinforced earth (RE) wall collapsed, prompting an immediate investigation and response.
The NHAI held KNR Constructions Ltd, the concessionaire for the project, responsible for negligence in assessing ground conditions and failing to enhance the soil’s bearing capacity before work began. As a result, the company has been disallowed from further participation in tenders. Additionally, Highway Engineering Consultant — the project consultant — has also been barred from ongoing and future bidding.
The project manager from KNR Constructions and the consultant’s team leader have been suspended. NHAI has constituted an expert team, led by a retired IIT-Delhi professor, to analyse the incident and suggest remedial actions. The repair work will be carried out at the risk and cost of KNR Constructions.
Further, NHAI has stated that guidelines will be issued to ensure similar incidents are prevented in other ongoing projects across Kerala.
The development is likely to weigh heavily on KNR Construction’s stock performance, which will be closely watched by market participants.
