Highway builders seek PM’s intervention on PPP project timelines, arbitration restrictions India News

New Delhi: Country’s top road builders body seeks Prime Minister Narendra ModiIntervened to review the tight construction schedule of the PPP mega-road project, its overall financeability and the modification of dispute resolution through arbitration.In a letter to the Prime Minister, the National Highway Builders Federation (NHBF) mentioned the recent tender for 200 km of greenfield projects under the public-private partnership (PPP) method, which will have a construction period of two years.“Given the scale of such a project and the scope of activities involving land supply, utility transfers, primary and secondary structures, flyovers, safety regulations and stringent quality standards, industry is concerned that such a timetable may pose significant execution challenges even on best efforts,” the NHBF said.The report states that despite intense attention and continuous efforts by stakeholders, the Delhi-Vadodara Greenfield Expressway is yet to be completed more than five years after its construction began. It urged the government to set realistic construction timetables to ensure quality and on-time completion.It also expressed concern over the recent amendments to the dispute resolution clause of the PPP agreement, which restricted arbitration of disputes above Rs 10 crore. The changes were made with reference to the June 2024 notification from the Ministry of Finance.The NHBF said that while arbitration has been restricted, “thoughtful and financially capable players may still bid, but if a dispute arises it is likely to go to court”. It said that in such circumstances, even relatively minor contractual issues could lead to prolonged litigation, disruption to project execution and rising claims values, ultimately exposing the government to higher financial risks rather than resolving disputes more quickly or more efficiently.“There are also concerns that such a framework may inadvertently encourage the emergence of entities more focused on litigation-driven outcomes rather than enforcement, and that even minor disputes may cause projects to stall entirely, which may be inconsistent with the original objectives of the PPP Highways Programme,” the Highways Builders Association said.