Ashoka Buildcon Ltd., one of the infrastructure companies whose contracts have been terminated by the National Highways Authorities of India, said that an arbitration regarding possible debarment by the state-run road builder is underway.
This comes after the NHAI on Friday hinted at debarring contractors of 20 road projects that had been stalled on ‘default' claims in 2014-15. A notice enlisting the companies whose projects had been terminated was put up on the NHAI website, and they had been further asked to explain their position by today.
Ashok Katariya, chairman of Ashoka Buildcon, told BloombergQuint that “the NHAI is at fault since it did not issue a pre-notice to the companies before making such an announcement.” He said the issue has perhaps already been resolved by the NHAI as it took down the notice soon after flashing it.
He said construction firm has submitted a response to the authorities and are awaiting some clarity on the resolution.
Meanwhile, Alok Deora, associate vice-president- research at IIFL Wealth Management, expressed his concerns on the possible implications of such a notice. He said, “The banning of some of the large players in the list could pose a threat to the execution of the Bharatmala project as other existing contractors may not be in a position to execute the huge projects entirely.”
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