Highway Arbitration Cases With Rs 78,653 cr Claims Ongoing

The main reason is compensation for delays in land handover, Nitin Gadkari told the Lok Sabha in a written reply.

Union minister Nitin Gadkari.

(Photo Courtesy: Wikimedia Commons)

More than 300 highways arbitration cases involving total claims of Rs 78,653 crore are ongoing, Union minister Nitin Gadkari informed the Lok Sabha on Thursday, 12 December.

The main reason for arbitration cases is compensation for delays in land handover, the Road Transport and Highways Minister told the Lok Sabha in a written reply.

“318 arbitration cases are ongoing with a claim amount of about Rs 78,653.00 crore. There are few cases where the amount of claim raised by the Contractor/ Concessionaire is more than the total project cost,” Gadkari said.

Main reasons of invocation of arbitration are compensation for delay in handing over of land, damages due to Change in Scope, loss incurred on account of extended stay in the project, delay in distribution of grant/annuity payment, change in law, additional interest paid to lenders, interest on delayed payments, non-achievement of project milestones etc, he said.

The Minister said award has been published in 694 arbitration cases, out of which 293 have been settled so far.

He said the government has resolved that work will not be awarded where 80 per cent of encumbrance free land is not made available for the project.

Alternate dispute resolutions through Committee of Conciliation by Independent Experts are constituted to avoid Arbitration, he added.