Highway Builders Oppose End of Arbitration in Large Disputes, Seek Clarification

The National Highway Builders Federation (NHBF) has opposed the road transport ministry's January 12 directive to end arbitration for disputes exceeding Rs 10 crore, including ongoing and contracted projects where arbitration has not started. Citing concerns over contractual fairness, project cash flow, and lender confidence, NHBF has urged withdrawal of these provisions for active projects. It has also requested Finance Minister Nirmala Sitharaman for sector-specific clarification on the 2024 finance ministry order mandating conciliation instead of arbitration for such disputes.