Ashoka Buildcon has received the Letter of Acceptance (LoA) for a major infrastructure project from the Brihanmumbai Municipal Corporation (BMC). The project, valued at ₹1,815.79 crores excluding GST, involves the Mithi River Development and Pollution Control Project (Package III), representing a significant milestone for the company's infrastructure portfolio. The project bid price has been confirmed at ₹18.16 billion.

Project Details and Scope

The comprehensive project encompasses Dry Weather Flow Interception at Tidal Outfalls (including Gate Pumps), Transfer Sewer, Training of River, Service Road, Retaining Wall and Allied Works. The scope extends from CST Bridge Kurla to Mahim Causeway including Vakola River on a Design, Build and Operate model.

Joint Venture Partnership Structure

The project will be executed through the M/s Adani-Ashoka-Aakshaya Joint Venture, bringing together expertise from three infrastructure companies. The partnership demonstrates a strategic collaboration for handling large-scale municipal infrastructure development.

Strategic Significance

The Letter of Acceptance confirms Ashoka Buildcon's successful bid participation in this substantial BMC infrastructure initiative. The project focuses on critical environmental infrastructure, addressing river development and pollution control measures in the Mumbai metropolitan region.

The 48-month construction timeline, excluding monsoon periods, followed by a 10-year operation and maintenance phase, ensures long-term revenue visibility for the joint venture partners. This project structure aligns with the Design, Build and Operate model, providing comprehensive project lifecycle involvement.

Market Impact

This contract win significantly strengthens Ashoka Buildcon's order book and reinforces its position in the municipal infrastructure segment. The company's 26% stake in the joint venture ensures substantial participation in project execution while benefiting from the partnership with Adani Road Transport Limited as the lead member.

Ashoka Buildcon Limited , a prominent infrastructure development company, has encountered a significant setback in its operations following a tragic incident during the construction of a six-lane Elevated Corridor on National Highway 66 (NH-66).

NHAI Issues Show Cause Notice

The National Highways Authority of India (NHAI) has issued a Show Cause Notice (SCN) to Ashoka Buildcon on November 26, 2025, regarding a severe incident that occurred during the construction of the six-lane Elevated Corridor from Aroor to Thuravoor Thekku section of NH-66 (Km 366.330 to Km 379.082).

Incident Details

The incident involved the collapse of two precast Prestressed Concrete (PSC) girders, with one falling onto a commercial vehicle, resulting in the fatality of the driver. This unfortunate event has raised concerns about public safety and construction practices.

Temporary Suspension

As a consequence of this incident, NHAI has taken the following actions:

Company's Response

Ashoka Buildcon has respectfully denied the allegation that public safety was endangered. The company maintains that the incident resulted from sudden and unforeseeable circumstances, not attributable to any lapse in their safety practices.

The company has presented the following key points in its defense:

1. The incident was triggered by a sudden and unpredictable failure of a hydraulic jack due to internal seal damages.
2. The girder fell on a moving goods carrier vehicle that had forcibly entered a prohibited construction zone.
3. The company asserts that it has consistently implemented and maintained all safety precautions and protocols in line with Good Industrial Practices, contractual requirements, and applicable codes and safety measures.

Financial Impact

Ashoka Buildcon is currently in the process of ascertaining the financial impact of this incident and suspension. The company has stated that it will intimate the stock exchanges in due course of time. All other operations of the company remain unaffected.

Regulatory Compliance

The company has affirmed its commitment to following all rules, regulations, and standards prescribed by regulatory authorities and will continue to do so.

This incident serves as a reminder of the critical importance of safety measures in infrastructure projects and the potential consequences of unforeseen events in construction sites. As the investigation unfolds, it remains to be seen how this will impact Ashoka Buildcon's future operations and its standing with NHAI.