Stressed road projects: Why arbitration has not worked

65 claims, worth Rs 26,300 cr, have been submitted by road developers in 19 cases, according to NHAI

It has been almost a year since the government moved a step closer to addressing the logjam in the road sector. As of March 31, 2015, the National Highways Authority of India (NHAI) had pending arbitration awards worth Rs 2,20,000 crore with its concessionaires.

The government had approved various measures to revive the “stressed” construction space, including a cabinet-approved proposal that allowed government agencies to deposit up to 75 per cent of an arbitral award amount in an escrow account against a margin-free bank guarantee in cases where the award is challenged. However, legal experts say the move is yet