Niti Aayog sets up task forces for achieving policy certainty in contract enforcement

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March 22, 2021 9:19 PM

The task force will also examine relevant provisions of the Arbitration and Conciliation Act, 1996, and the conciliation mechanism prescribed thereunder.

NITI Aayog CEO Amitabh Kant said projects have been identified to monetise assets over the next four years.NITI Aayog CEO Amitabh Kant said projects have been identified to monetise assets over the next four years.

Government think tank Niti Aayog on Monday said it has constituted two task forces that will recommend a policy framework for the enforcement of contracts as well as effective conciliation mechanism.

One task force, which will suggest facilitation of speedy resolution of contractual disputes between private entities and the government, will be headed by Niti Aayog CEO Amitabh Kant.

According to an official statement, the terms of reference of the task force headed by Kant will include developing and formulating guidelines for an effective conciliation mechanism, for speedy settlement/resolution of disputes arising out of contracts between the government (ministries, CPSEs) and private contractor/concessionaire.

The Kant-led task force will also suggest policy, procedural and institutional measures therein on related matters of applicability, conciliation process etc, it added.

The statement also said the task force will also examine relevant provisions of the Arbitration and Conciliation Act, 1996 and the conciliation mechanism prescribed thereunder.

Secretary, DPIIT; secretary, DEA; secretary, Department of Legal Affairs; chairman and CEO, Railway Board; secretary, MoRTH; secretary, Civil Aviation; secretary, Power; secretary, MNRE; chairman, NHAI; will be Member of the Kant-headed task force and it will submit its report within three months of its constitution.

“To facilitate speedy resolution of contractual disputes between Govt & Pvt entities and augment ease of doing business, a Task Force, under the chairmanship of #NITIAayog CEO @amitabhk87 has been constituted, to recommend an effective Conciliation Mechanism,” the Aayog tweeted.

The second task force, which will recommend a policy framework for the enforcement of contracts, will be led by Niti Aayog Vice Chairman Rajiv Kumar and will have members from key ministries and departments.

On the second task force, Niti Aayog tweeted, “To address risk perception in investing & to achieve policy certainty, a Task Force under the leadership of #NITIAayog VC @RajivKumar1 has been constituted, with participants from key ministries/departments, that will recommend a policy framework for the enforcement of contracts.”

The Aayog’s statement said the terms of reference of the task force led by Kumar will include constitution and operationalisation of adequate number of dedicated commercial courts with requisite infrastructure in major towns/clusters at the district level in all states to exclusively deal with commercial cases.

Examination of relevant provisions of the Commercial Courts Act, 2015 on its jurisdiction over different categories of cases and pecuniary jurisdiction of commercial courts will also be under Kumar led task force, it added.

Secretary, DEA; secretary, Revenue; secretary, Department of Commerce; chief secretary (Maharashtra); chief secretary (Gujarat); chief secretary (Andhra Pradesh); chief secretary (Tamil Nadu); chief secretary (Uttar Pradesh) will be member of the Kumar-headed task force and it will submit its report within six months of its constitution.

The Aayog also said the expert committee constituted by the Ministry of Petroleum and Natural Gas (MoPNG) submitted its report, suggesting a road map for 20 per cent ethanol blending in petrol by 2025.

The report suggests year-wise targets for the production and supply of ethanol; manufacture of compliant vehicles and regulatory simplification, it added.

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