Union Minister for Road Transport and Highways, Shri Nitin Gadkari has informed that The dispute resolution process has been strengthened to reduce contingent liabilities arising out of litigation.
Keeping in view the provisions of the Arbitration and Conciliation (Amendment) Act, 2015, NHAI has set up a mechanism for conciliation and settlement of the contractual disputes in a transparent manner by establishing a Conciliation & Settlement Committees of Independent Experts (CCIE) as to expedite the dispute resolution process. As the amount involved in the Arbitration and Court pending cases form major part of Contingent Liabilities, the mechanism for expeditious settlement of disputes will reduce the Contingent Liability of NHAI. So far three CCIE have started functioning.
For the FY 2022-23, Government has allocated additional budgetary support of Rs. 59,000 crore for NHAI and reduced the proposed IEBR requirement to nearly Rs. 0.01 crore in order to reduce the liabilities of the NHAI. Government has also allowed other innovative financing models to NHAI e.g. TOT, InVIT, SPV etc. for asset monetization.