PSP Projects Secures Landmark ₹61.44 Cr Arbitration Win Against BNCMC

PSP Projects Limited announced a favorable arbitral award on January 11, 2026, concluding its long-standing dispute with Bhiwandi Nizampur City Municipal Corporation (BNCMC). The tribunal directed BNCMC to pay ₹61.44 crore principal plus interest within 60 days, marking a significant recovery for the construction firm. This development, disclosed to BSE and NSE, bolsters PSP's financial position amid ongoing market volatility.

The arbitration stemmed from disputes over a construction contract for dwelling units under Pradhan Mantri Awas Yojana in Bhiwandi, initiated years ago amid project delays linked to COVID-19 and other issues. PSP Projects, listed on BSE (540544) and NSE (PSPPROJECT), positioned itself as claimant against BNCMC. The recent award resolves the matter decisively in the company's favor, enhancing liquidity without notable balance sheet strain, as per the filing signed by Company Secretary Pooja Dhruve on January 12, 2026.
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Key Highlights

• Award Amount: BNCMC must pay principal of ₹61,44,17,413 plus accrued interest up to January 11, 2026, within 60 days.
• ​Penalty Clause: 11% p.a. interest applies on the total if payment is delayed beyond the stipulated period.
• ​Proceedings Concluded: Follows initial intimation in February 2023; no adverse financial impact anticipated on PSP Projects.
• ​Disclosure Compliance: Filed under SEBI (LODR) Regulations, 2015, with Annexure details.

This victory arrives as PSP's shares trade around ₹870-₹900, reflecting resilience in the infra sector. Investors eye potential order inflows, including recent ₹270 Cr GIFT City project. The outcome underscores effective dispute resolution in India's construction landscape.
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Sources: PSP Projects Limited BSE/NSE Disclosure (Ref No: PSPPROJECTSE7125-26, Jan 12, 2026); SEBI LODR Regulations.