KEC Barred from Participating in PGCIL’s Tenders for 9 Months

In a stock filing, KEC International Ltd. shared that it has been barred from participating in any tenders issued by Powergrid Corporation of India Ltd. (PGCIL or POWERGRID) for a period of 9 months starting 18th November 2025. However, this will not affect the execution of any ongoing projects already awarded by PGCIL to KEC.

KEC mentioned in its filing, “The Company is examining various options available to it, including legal recourse / approaching PGCIL for reconsideration of the above”. KEC’s shares took a 9.13% hit after its exclusion from participation in PGCIL’s future tenders was made public. On 18th November, the company’s shares were trading at Rs. 781.70 apiece against Rs. 710.35 apiece on the following trading day.

PGCIL has taken this decision based on alleged contractual violations by KEC, “…in relation to an earlier matter communicated to the stock exchanges vide letter dated March 24, 2025”. On March 24th 2025, KEC had provided clarification to the stock exchanges on a media item, which mentioned the arrest of a PGCIL GM and a KEC International Executive by the CBI in a Rs. 2.5 lakh bribery case. This media item mentioned that as per CBI officials, the said PGCIL GM had accepted bribe from the said KEC executive in exchange of favours. This media item also mentioned that the CBI arrest was made on 20th March 2025.