Govt considering changes in Arbitration Act: Natchiappan

The company had posted a net profit of Rs 61.06 crore a year earlier

The government is considering to make changes in the Arbitration and Conciliation Act to make dispute resolution for corporates speedier, cheaper and amicable.

 

"The proposed changes in the Act would make the process of dispute resolution smoother and indicate that India is a business-friendly nation," said a statement by industry body Ficci quoting Minister of State for Commerce and Industry E M Sudarsana Natchiappan.

 

The Minister was speaking at the 83rd Annual General Meeting of ICC India, Indian affiliate of the Paris-based International Chamber of Commerce (ICC), a world business organisation and an allied body of Ficci.

 

In 2010, the Ministry of Law and Justice had proposed to amend the Arbitration & Conciliation Act, 1996 to include provisions on out-of-court settlement.

 

"The government proposes to make the Act more effective in order to make dispute resolution for corporates speedier, cheaper and amicable," it said, adding that the main objectives of the Act are to comprehensively cover international and domestic commercial arbitrations and conciliations.

 

The Minister also asked the corporates to tap the opportunities for investments that are expected to open up following the roll-out of Food Security Act.

 

"The process of procurement of food grains and its ultimate delivery for the public distribution system would require development of the entire agri-value chain from food processing to multi-modal transportation and building of modern warehouses. This will require huge doses of investment by the private sector," he said.

 

Speaking at the occasion, former Ficci President Rajan Bharti Mittal said India can play an important role in the realm of economy at the global level.

 

"In the last 12 to 18 months, some sheen has been taken off the India growth story and we may be perceived as a nation that is losing its economic plot.

 

"Therefore, at this point in time, we need to reflect and act in those areas that are holding us back and which could bereft India of the rightful role that it can play on the global stage," Mittal said.

 

He added that although the government has tried to improve the business climate with several decisions, there is a need for basic consensus across polity on the larger economic agenda for the nation if growth has to head back to the 8-9 per cent mark.