NHAI settles disputes for Rs 10,550 cr projects with builders

The government today said highways authority NHAI has settled disputes with developers pertaining to Rs 10,550 crore of road projects.
The development comes at a time when a whopping Rs 26,556 crore investment is embroiled in disputes between National Highways Authority of India (NHAI) and road developers.
"The NHAI, as a part of its dispute settlement mechanism, has so far resolved 49 pending claims for Rs 10,550 crore from 26 contractors/concessionaries for final packages worth of Rs 958 crore," an official statement said.
The statement said the NHAI board in its meeting today resolved various disputes involving three contract packages worth over Rs 2,348 crore for an amount of over Rs 271 crore.

"All these settlements are made amicably after negotiations with the parties concerned and after screening of these proposals through three tiers," the statement said.
These include a Committee of three Chief General Managers, an Independent Settlement Advisory Committee (ISAC) and a final consideration / approval by the Executive Committee/Board of the NHAI.

This mechanism was approved by the NHAI Board in November 2012, for speedy resolution of long pending disputes in EPC (engineering, procurement and construction) and BOT (build, operate and transfer) projects.
It has recently been decided under instructions from the Minister for Road Transport, Highways and Shipping Nitin Gadkari to expedite the process of one time settlement of old disputes pending in arbitration or in courts to take forward various pending projects.

Gadkari earlier this month had said out of the disputed amount, disputes involving Rs 22,773 crore were pending for arbitration while another Rs 3,783 crore was involved in court cases.