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Infra Builders Urge Finance Ministry to Revive Dispute Resolution Scheme
The National Highways Builders Federation (NHBF) has formally urged the finance ministry to revive the Vivad se Vishwas II (Contractual Dispute) scheme or introduce a comparable one-time settlement window. This initiative specifically targets the road and core infrastructure sectors, aiming to accelerate the closure of long-standing disputes. The federation highlighted that such a revival is crucial for providing a much-needed impetus to early dispute resolution.
The NHBF submitted its request on January 9, 2026, to Finance Minister Nirmala Sitharaman. The organization stated that re-implementing the scheme, with adjusted cut-off dates and extended timelines, would significantly enhance cash flows for both project authorities and contractors. This move is also seen as a critical step in reinforcing the government's commitment to improving the ease of doing business and ensuring timely resolution of disputes within public contracts.
Despite previous positive outcomes from the earlier scheme, a considerable number of contractual disputes persist. These unresolved issues involve the Ministry of Road Transport and Highways and the National Highways Authority of India. According to the NHBF, these ongoing disputes lead to continuous accrual of interest liabilities for government bodies and place severe strain on the financial health and cash flows of concessionaires and contractors.
The protracted litigation process has a detrimental effect on all parties involved. It dampens investor sentiment in the infrastructure sector, which is vital for economic growth. The NHBF emphasized that swift and effective dispute settlement mechanisms are essential for attracting and retaining investment in these critical projects.