Recently, an inter-ministerial meeting was held for the first time to discuss the proposal to set up a regulator for the road sector.
The meeting was attended by the officials from the finance ministry, the law ministry and the National Highways Authority of India (NHAI).
During the meeting, Planning Commission expressed strong reservations over giving the proposed regulator the power to change highway contracts or alter the way these are implemented.
However, the road transport and highways ministry is reportedly in favour of giving this power to the regualtor.
The ministry feels that the sector is facing many contract management issues that are best resolved by an independent regulator. Attempt will be made to reconcile all opinions.
An independent regulator has to be able to resolve the contractual problems being faced by the road sector. It is expected that a few more meetings would be held to reconcile all opinions.
The ministry will meet concessionaires and lenders on April 10 to seek their views on the proposed regulator. Over Rs 11,000 crore of developers’ dues from over 1,600 claims are held up in courts, arbitration tribunals and dispute resolutions boards.
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