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Lucknow-Kanpur Expressway sinks, yet firm got new contracts worth ₹3,483cr 
NHAI has issued a show-cause notice to PNC

Lucknow-Kanpur Expressway sinks, yet firm got new contracts worth ₹3,483cr 

Aug 06, 2026
03:18 pm

What's the story

The Lucknow-Kanpur Expressway, built by PNC Infratech Limited at a cost of ₹4,200 crore, started caving in just 14 days after its inauguration. The National Highways Authority of India (NHAI) has issued a show-cause notice to declare the company a "non-performer" over these incidents. Yet, before the cave-ins became public knoweledge, NHAI had awarded PNC Infratech two new highway contracts worth ₹3,483 crore along NH-927 in Uttar Pradesh, News18 reported.

Project timeline

Technical audit of expressway ordered by NHAI

The Lucknow-Kanpur Expressway, India's first "barrier-less" expressway, was inaugurated on July 13. However, just days later on July 26, the first cave-in was reported near Korari following heavy rainfall.

At the time, NHAI had maintained that the damage was limited to the embankment and that the carriageway and bridge structure were safe.

But a second major cave-in occurred near Unnao around August 5 and went viral on social media.

Disciplinary measures

NHAI proposes 2% penalty on performance security amount

NHAI has since ordered a full technical audit of the expressway by IIT Kanpur and a laser profilometer-based pavement assessment by an IIT Kharagpur professor.

NHAI has also proposed a 2% penalty on PNC Infratech's performance security amount and hinted at a possible three-year debarment for project officials responsible for the road quality issues.

The concessionaire has also been directed to undertake complete rectification of the affected stretch at its own cost.

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Contract controversy

PNC Infratech awarded new highway contracts amid controversy

While the action was taken only recently, disclosures the company made to BSE and NSE on July 17 showed PNC Infratech signed concession agreements on the evening of July 16 for two Hybrid Annuity Mode (HAM) packages on NH-927.

This has raised questions about the timing of these new contracts.

Samajwadi Party chief Akhilesh Yadav, sharing a video of the caved-in expressway, wrote on X, "The public is asking: Is this designed for....people, or to make profits for BJP-aligned contractors?"

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