NewsPNC Infratech Executes ₹234.99 Cr Settlement Agreement with NHAI Under Vivad-se-Vishwas III SchemePNC Infratech Executes ₹234.99 Cr Settlement Agreement with NHAI Under Vivad-se-Vishwas III Scheme
PNC Infratech signed a settlement agreement with NHAI on 12 May 2026 for Rs. 234,99,03,465 under the Vivad-se-Vishwas III (Contractual Disputes) Scheme, resolving a dispute stemming from an arbitration award of ₹485,27,66,095.00 for the Agra Bypass EPC project. The settlement, accepted by the company on 5.5.2026, includes principal and interest components per scheme guidelines, with the full amount to be received from NHAI.
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PNC Infratech has executed a settlement agreement with the National Highways Authority of India (NHAI) for Rs. 234,99,03,465 (Rupees Two Hundred Thirty-Four Crore Ninety-Nine Lakh Three Thousand Four Hundred Sixty-Five only). The agreement, signed on 12 May 2026, concludes the one-time settlement process under the Vivad-se-Vishwas III (Contractual Disputes) Scheme for the Agra Bypass EPC project.
Background of the Dispute
The settlement resolves an arbitration award published on 17 May 2025 in favour of PNC Infratech. The original award amounted to ₹485,27,66,095.00 regarding the EPC project for the construction of the new four-lane Agra Bypass connecting Km.176.80 of NH-2 to Km.13.03 of NH-3 in Uttar Pradesh. Following the implementation of the Vivad-se-Vishwas III Scheme by the Ministry of Road Transport and Highways in February 2026, NHAI extended a settlement offer based on 45% of the net arbitration award amount plus applicable interest.
Settlement Details
The company formally accepted NHAI's offer on 5.5.2026. The final settlement amount of Rs. 234,99,03,465 includes the principal settlement sum and interest components calculated as per the scheme guidelines. The table below outlines the key particulars of the dispute and the resolution:
| Particulars: | Details |
|---|---|
| Name of the Party to Dispute | PNC Infratech Limited (Agra Bypass Project) |
| Name of the Opposing Party | National Highways Authority of India (NHAI) |
| Forum for Settlement | Government e-Market Place (GeM) portal under Vivad-se-Vishwas III Scheme |
| Settlement Agreement Date | 12 May 2026 |
| Total Settlement Amount | Rs. 234,99,03,465 |
Financial Implications
The execution of the settlement agreement carries positive financial implications for the company. PNC Infratech is scheduled to receive the total amount of Rs. 234,99,03,465 from NHAI. The payment will be processed following the formal signing of the agreement, marking the resolution of the long-standing contractual dispute related to the infrastructure project.
Historical Stock Returns for PNC Infratech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.25% | -1.11% | -2.55% | -15.98% | -27.69% | -16.66% |
How will PNC Infratech deploy the Rs. 235 crore settlement proceeds, and could this accelerate debt reduction or fund new project bids?
Are there other pending arbitration disputes between PNC Infratech and NHAI that could be resolved under the Vivad-se-Vishwas III Scheme, and what is their combined potential value?
How might the 45% settlement discount under the Vivad-se-Vishwas III Scheme influence PNC Infratech's future contract negotiation strategies with NHAI?
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