Synopsis: Highway Infrastructure Limited (HIL) has been debarred by the NHAI from participating in new tenders for three months following the company’s withdrawal from the Venkatapalem Fee Plaza project. Alongside the bidding ban, the authority imposed a ₹26.33 lakh penalty, marking a significant regulatory setback as the company cited commercial unviability for its exit.
Highway Infrastructure Limited has been debarred from the NHAI’s pre-qualified bidders list for a period of three months, effective from April 9, 2026. This disciplinary action follows the company’s decision to withdraw its Letter of Acceptance (LOA) for the operation and collection of user fees at the Venkatapalem Fee Plaza in Andhra Pradesh.
The restriction is comprehensive, applying not only to the company but also to its directors and owners, effectively freezing their ability to bid on fresh national highway projects during this period.
The decision to withdraw was informed by an assessment at the board level which found the project commercially unsustainable. Although the company claimed that the operational change to its current portfolio that comprises key assets such as the Delhi-Meerut Expressway is inconsequential, the withdrawal occasioned a compulsory financial fine of 26.33 lakh. It is a timely blow to the industry, with project awards being at an all time low in the 2026 fiscal year, which may hamper HILs capacity to refill its order book in the active pre-monsoon awarding season.
Despite the regulatory headwind, Highway Infrastructure Limited shares rose 1.45% to ₹50.93 on the NSE by 11:37 AM today. Investors appear to be prioritizing the company’s 23.7% five-year profit CAGR and the voluntary nature of the project withdrawal over the three-month ban. However, the stock still trades well below its 52-week high of ₹131.40, aligned with broader sector valuation shifts.
Company Overview
Highway Infrastructure Limited is an Indore-based firm specializing in tollway operations and EPC projects. Founded in 1995, the company operates across 11 states and one Union Territory, with toll collection typically accounting for over 78% of its total revenue.
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