Baharampore-Farakka Highways for instance, according to HCC, has initiated conciliation with NHAI for its arbitration award and other claims.
The combined value of settlement pay-outs by the National Highways Authority of India (NHAI) is increasing, indicating that road companies might increasingly be choosing the conciliation route for claims.
Debt resolution, Covid-related liquidity concerns, and a long legal process acting as deterrent are some reasons pushing firms to pursue conciliation. At present, HCC, Sadbhav Engineering, Ashoka Buildcon, and IL&FS are pursuing this process.
Besides, conciliation is an easier and fairer process for companies that already face liquidity issues and cannot offer a bank guarantee to avail of 75 per cent of arbitration award at a later stage. “One can resolve claims within six months without going through legal hassles and unlock capital stuck for growth,” said Ratnam Raju, associate director,
First Published: Oct 13 2020 | 8:08 PM IST