Amritsar (National Times) – Ceigall India Limited has announced the termination of its contract with the National Highways Authority of India (NHAI) for the construction of a four-lane Greenfield Amritsar connectivity project. The project, executed in partnership with Ms Krishna Constructions, was intended to link Amritsar with the Delhi-Amritsar-Katra Expressway.
The termination was officially communicated by NHAI through letter No. NHAI/PIU/ASK/DAK/PKg-1/File-207962, dated February 25, 2025. The contract was ended under Clause 3.4 of the agreement, primarily due to insufficient land acquisition along the designated project stretch.
Despite Ceigall India Limited’s request to revoke the termination, NHAI upheld its decision. However, the authority has agreed to compensate the company with damages amounting to 1% of the contract price, as stipulated in the contract terms.
The project, valued at ₹1,071 crores, was part of an ongoing infrastructure development initiative under the EPC (Engineering, Procurement, and Construction) model. The company has advised stakeholders to review page 217 of its Red Herring Prospectus for further financial details and implications.
Ceigall India Limited has also made the official statement available on its website and urged stakeholders to take note of the latest developments.
