RASHME SEHGAL
NEW DELHI
June 2: Slow dispute resolution is one of the key reasons for the tardy implementation of the National Highways Development Projects, which was expected to cover 50,000 km by 2012. So far, it has only been able to cover 10,000 km.
At present, over 4,500 cases worth over Rs 10,000 crores are pending before the Dispute Resolution Board (DRB) created by the National Highways Authority of India (NHAI) to thrash out pending issues.
This is a conservative estimate because Mr Ajit Gulabchand, CMD of Hindustan Construction Company, has put the figure at Rs 45,000 crores being presently locked in infrastructural wrangles.
Director-general of the National Highways Builders Federation, Mr M. Murali points out, “Almost all the 120 concessionaires presently executing NHAI projects are facing this problem.”
Mr Murali believes this problem has been further compounded by the fact that bills pending clearance before the NHAI often remain unpaid for over a decade.
“NHAI owes over Rs 7,000 crores in dues to different construction companies. Lack of flexibility and a PWD culture is one of the main reasons why their attempts to push over Rs 50,000-crore worth of projects in 2007-2008 has met with failure,” Mr Murali added.
Member of the project, Mr S.K. Puri believes that disputes are bound to take place.
He said, “We are executing hundreds of projects and there are bound to be differences in the claims being made by many of the contractors.”
“The job of the DRB, a semi-judicial body, is to visit the site and make recommendations and if these are not accepted, the matter is sent for arbitration. When the latter’s verdict is not accepted, either side may choose to pursue the matter in a law court,” Mr Puri added.
Administration member of the NHAI, Mr K.S. Mani blames contractors for making “wild claims”. “Sometimes their claims seem to have little basis with reality,” he said.
Mr Mani feels that contracts should be awarded only after all legal clearances are obtained. “Another major bottleneck has been land acquisitions. If there are delays on this front, then NHAI is made to bear the flak,” he said. But, Mr L.K. Joshi, vice chairman of CAT and former road transport secretary, believes this increasing trend towards arbitration is because decision makers are scared to take decisions.
“It is very unfortunate that the numbers of arbitration cases are mounting. The reason is that neither the ministry nor the Planning Commission have given NHAI any autonomy,” he said.
