A better mechanism to resolve disputes and releasing funds stuck with the government bodies are among key issues that need to addressed to bring private sector investments back in the infrastructure sector, Vinayak Chhatterjee, Chair, Confederation of Indian Industry’s Infrastructure Committee, said.

“These issues relate to how the contracts have been framed,” Chhatterjee said during a media interaction after a CII meeting in which NHAI Chairman Raghav Chandra, Tata Power’s Anil Sardana and others participated.

Chatterjee said many issues relating to private sector sentiments had been addressed by the Kelkar Committee, and the government must “speed up its recommendations.” The committee has suggested renegotiation of public-private partnership (PPP) projects, institutions and mechanisms.

Industry also wanted the setting up of 3P India, which was announced in the first Budget of the NDA government, when ₹500 crore was allocated.

“Calling for a new architecture to be created through this mechanism — be it financial architecture in terms of creating new mechanism of funding or one for dispute resolution— the idea is to create a world class body, a positive architecture,” he added.  

Pitching for introduction of the Dispute Resolution Bill in the ongoing Monsoon Session of Parliament, Chatterjee said: “A lot of good work has been done by the government — with the intervention of the Law Ministry or the operating Ministries — in the public utilities dispute resolution Bill. It has some excellent provision which cuts down the time, and addresses concerns of individual officers from the CAG, CVC and CBI, apart from providing time-based resolution on when disputes have to be closed and implemented.”

Due share He said the private sector seemed to be sitting outside on many decisions and changes in institutional framework, and should be given its due share of participation.

“PPP contracts by their nature are called incomplete legal contracts, so there should be flexibility,” Chatterjee said, reiterating that it was not often that government was at fault, private sector was also at fault.

He suggested a renegotiation commission, which could be a quasi-judiciary body and an umbrella unit, to which all PPP disputes can be referred to. “Apart from legal profession, it should have representations from civil society, technical professionals, and bankers,” he said, adding that it should carry judicial write, not allowing for challenge.

“At present, disputes end up going to the Supreme Court, and many times the Supreme Court refers the disputes back to some of the bodies that are present,” said Chatterjee.

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