ROLE OF ADR IN RESOLVING DISPUTES OF INDIAN INFRASTRUCTURE SECTOR

Abstract

In this decade, Government of India has taken up infrastructure developments of huge magnitude under Public-Private Participation (PPP) in the areas like irrigation, roads, ports, and power projects, which need abundant private sector investments. Development of infrastructure in a country like India involves large number of projects being carried out across the country amidst various economic, political, social & climatic conditions, and challenges. Many of these projects have often suffered cost and time delays due to disputes over land acquisition, grants for environmental and forest clearance, and other approval. Disputes arising in the Infrastructure Sector been a toll on the overall growth and development of Indian infrastructure projects resulting in either delayed completion or abandoning the project itself. Many foreign companies are willing to invest and set up joint venture projects in India but they apprehend that in case of any dispute the Indian courts would take long to decide the claim which in turn will lead to increase in overall cost of the project. Thus, it can be said that slow dispute resolution process prevailing in the country is keeping the foreign investment at bay. The shortcomings of civil or commercial litigation have come to the forefront in the developing nations in the contemporary period which has necessitated the rise of alternate dispute resolution mechanisms all over the world. It is necessary to cut down the demand for adjudication, through arbitration and other ADR mechanisms. DR provisions in the ‘Project Concession Agreement’ may not be sufficient to manage the evolving dispute that is expected to be encountered at different stages of the project. This paper explores the various dimensions of disputes arising out of infrastructure construction industry and their possibility of being resolved amicably by alternate modes of dispute resolution. This paper tries to clarified the critical issues affecting current infrastructure PPP practice, thereby enhancing infrastructure PPP practitioners understanding of potential barriers to successful infrastructure PPP in Dispute Resolution.