Archive · 25 Jun 2025
NHAI's Dispute Resolution System: Is it Working?
Imagine the National Highways Authority of India (NHAI) is building roads and sometimes has disagreements with the companies doing the work.
They have a special process to solve these problems.
First, they try to talk it out.
If that doesn't work, they go to a group of experts, like referees.
If that doesn't work, they can go to a court.
But the process is slow, and sometimes the companies skip steps because it takes too long.
It's supposed to save money and time, but it's not always working as planned.
Many disagreements still need to be resolved.
NHAI's dispute resolution system is under strain with nearly ₹1 trillion in claims.
Contractors are bypassing the Dispute Resolution Board (DRB), heading straight to the Conciliation Committee.
The three-tier system was introduced in 2020 to encourage early settlements and reduce arbitration.
Experts note mixed results, with delays and bottlenecks affecting the DRB process.
The CCIE has seen an increase in settled disputes, but hundreds remain unresolved.
- Who
- National Highways Authority of India (NHAI) and contractors
- What
- NHAI's dispute resolution system is facing challenges with numerous unresolved claims and procedural issues.
- When
- The system was introduced in September 2020 and tightened in June 2024.
- Where
- India
- Why
- To reduce arbitration costs and encourage early settlements but facing issues.
Effectiveness of Dispute Resolution Process
Conciliation Committee
Speed and Efficiency
Effectiveness of Dispute Resolution Process
Experts note that the DRB process faces delays and ambiguities, often defeating its purpose, causing contractors to bypass it.
Conciliation Committee
The CCIE has shown an increase in settled disputes, reducing the burden on tribunals and courts.
Acceptance of Decisions
Effectiveness of Dispute Resolution Process
NHAI itself does not agree with the DRB's decision in most cases.
Conciliation Committee
CCIE settlements are more likely to be accepted by all parties.
- Total Claims
- ₹1 trillion (approaching)
- DRB Establishment Time
- About a month
- Annual Highway Awards (FY22)
- 6,300 km
- Annual Highway Awards (FY25)
- 4,000 km (estimated)
- Construction (FY24)
- Over 6,600 km
- Construction (FY25)
- About 5,600 km
- CCIE Settlements (FY23)
- 189 cases, ₹16,522 crore