Rethinking Dispute Resolution in India's PPP Projects

Infrastructure projects are always perceived to be in the high risk category. To reduce development risk and revive private sector participation in infrastructure investment, the Government has on one hand launched Hybrid Annuity Model based PPP, while also simultaneously increasing its investment into greenfield projects. While these steps are welcomed by the private sector, a major area of concern for them at the stage of contract management is the setting up of an efficient and credible dispute resolution mechanism which would ensure settlement of disputes in a time-bound manner. For the private infrastructure investment to rejuvenate, it requires concentrated effort on three levels, (i) improving financial capacity, (ii) timely and non-confrontational dispute resolution, and (iii) reducing execution uncertainties. What steps are needed to achieve this?