Power Grid Corp Bars KEC International From Tenders, Deals For Nine Months

Government-owned Power Grid Corp. has barred KEC International Ltd. from participating in tenders and award of contracts for a period of nine months for alleged violation of contractual provisions.

"The company has been excluded from participating in tenders of PGCIL and award of contracts by it for a period of 9 months from November 18, 2025, without affecting any of the existing projects of PGCIL under execution, for alleged transgression of contractual provisions," KEC said in stock filing on Tuesday.

The Mumbai-based company said it is examining various options available to it including legal recourse and approaching PGCIL for reconsideration of the temporary ban.

"The company does not envisage any significant impact on its operations and financial position, considering the strong order book and tender pipeline," the filing said.

PGCIL's action comes months after a bribery scandal involving senior officials came to light.

The Central Bureau of Investigation in March arrested Uday Kumar, senior general manager of PGCIL, for allegedly taking a bribe of Rs 2.5 lakh from an executive of KEC to extend favours to the company.

Kumar was arrested along with Suman Singh of KEC International. The FIR has named five individuals and KEC International as accused, reports said.

KEC International is a infrastructure Engineering, Procurement and Construction company with a presence in the verticals of power transmission and distribution, civil, transportation, renewables, oil and gas pipelines and cables and conductors.

The company's order book stands at Rs 17,000 crore.

Shares of KEC International settled 0.5% lower at Rs 781.15 apiece on the BSE, ahead of the announcement, compared to a 0.3% decline in the benchmark Sensex. The stock has fallen 35% so far this year.