New Delhi: Reliance Infrastructure (RInfra), which has over Rs 14,000 crore under advanced stages of arbitration for various projects, on Friday hailed the Cabinet's decision to revive construction sector, terming it a "landmark initiative".
An array of measures approved by the Cabinet Committee on Economic Affairs (CCEA), including easing of rules for quicker settlement of disputes, pump in liquidity and reinvigorate stalled projects, will revive the sector, the infrastructure major said in a statement.
"This landmark initiative by the CCEA will boost the stressed infrastructure sector and also help infuse much required liquidity in the system. It is a very positive and bold move by the government to help revive the stalled projects which suffer due to long settlement periods," Lalit Jalan, CEO, Reliance Infrastructure, said.
The statement said Reliance Infrastructure has already won arbitration awards for two road projects of Rs 170 crore.
"In addition, over Rs 14,000 crore are under advanced stages of arbitration for various projects," it said.
Jalan said the CCEA has created an enabling framework for government agencies / PSUs to release 75 per cent of arbitration award to concessionaires / contractors, without worrying about subsequent scrutiny.
He also lauded government's initiative of allowing the disputing parties to migrate to new Act even if arbitration was initiated prior to enactment of amended Arbitration Act of 2015.
RInfra said the CCEA decision will ensure that projects are not stranded due to long arbitration disputes between concessionaire / contractor and government agencies and lack of funds.
Under the new scheme of arrangement, all PSUs/Departments may consider setting up Conciliation Committees comprising independent experts to ensure speedy disposal of pending or new cases.
Reliance Infrastructure is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as power, roads and Metro Rail in the infrastructure space and the defence sector.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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