Road transport and highways ministry is planning to set up a committee to hear disputes between the National Highways Authority of India (NHAI) and private companies over road projects. However, the companies are not enthusiastic about the proposal, saying it would add one more body to deal with such matters.
More than 1,600 cases, with claims valued at R11,084.54 crore, are pending in various tribunals and courts. L&T, Lanco Infratech, Punj Lloyd, HCC and Gammon are among the companies involved in these cases.
The panel is proposed to be headed by former chief justice of Punjab and Haryana High Court Mukul Mudgal and would have members from the finance, road and law ministries, Comptroller and Auditor General (CAG), NHAI, Planning Commission and representatives of the industry.
Sources said the committee would act as an arbitrator only when the parties to cases agree for an out-of-court settlement. They said the ministry has already written to Mudgal for his consent and is waiting for his reply.
The committee is being set up in response to recommendations of Planning Commission member BK Chaturvedi-headed panel on national highways last year. The panel had suggested one-time settlement by bunching all ongoing cases with claim value of less than R10 crore or 5% of contract value, whichever is lower. It had asked for an expert panel, under the chairmanship of a legal expert, to review such cases. For future cases, the panel had recommended acceptance of decisions of the Dispute Resolution Board.
National Highways Builders Federation said the move is delayed, but hopes for a quick redressal of disputes. ?The Chaturvedi committee had submitted its report last year but nothing could be done as NHAI had no chairman. The NHAI chairman was required to decide whether to challenge the petitions of concessionaires or not. Although NHAI still does not have a full-time chairman, the new panel should expedite dispute resolution,? its director general M Murali said.
An official from an infrastructure development company said, ?It would be better to strengthen the existing arbitration process rather than setting up new committees that would have only an advisory role. Concessionaires are unlikely to take the decision of such panel seriously.”
