Need to resolve disputes, MoRTH tells FinMin as road construction slows

livemint.com:

The roads ministry has sought an extension of its scheme to resolve hundreds of disputes over contracts—including some stuck in courts—that are holding up road-building, according to two people familiar with the matter. Some 400 disputes between government agencies and contractors, involving a substantial sum of money, are stuck in arbitration and courts. The Ministry of Road Transport and Highways (MoRTH) expects the government’s Vivad Se Vishwas (dispute to trust) to speedily resolve these cases and unlock stuck capital.

But for this to happen, claimants must fulfil the eligibility criteria for filing of dispute resolutions and adhere to submission deadlines. According to a recent notification from the finance ministry, the deadline for submitting claims under the Vivad Se Vishwas scheme has been extended until December. However, the deadline has already passed for challenging a legal order in an existing dispute.

Arbitration orders passed up to 31 January 2023, and court awards up to 30 April 2023, qualify for a one-time settlement of claims. The ministry now wants an extension of this eligibility cut-off date till the end of November to bring more disputes for resolution. “Based on the suggestions from the industry, the ministry has sought extension of the scheme eligibility.

This would unlock a lot of capital that could be deployed for road and highway construction," one of the two people quoted above said. P.C. Grover, director general of the National Highway Builders Federation (NHBF), added, “We had requested MoRTH to take up the issue of amending the eligibility criteria for settlement of disputes under Vivad Se Vishwas with the finance ministry to maximize benefit to the industry and reduce disputes."