IL&FS crisis: Success of PPPs rests on prevention and resolution of dispute

Since the award of the legal cost is nominal and not actual, there isn't any disincentive for the parties not to challenge

The resolution of disputes between the Infrastructure Leasing & Financial Services Limited (IL&FS) group and government entities is seen as a way forward for the liquidity-strapped infrastructure financier and builder. Such a move is intended to bring in cash flow, thereby easing the task for the government-appointed board that took control of the group on October 1. 

IL&FS and the National Highways Authority of India (NHAI) are likely to opt for an out-of-court settlement in a couple of cases entangled in the arbitration process. IL&FS has arbitration claims worth around Rs 70 billion with the NHAI. Though discussions are currently on