Rethinking Dispute Resolution in Public–Private Partnerships for Infrastructure Development in India

Public–Private Partnership (PPP) has been a relatively successful model for infrastructure development in India. However, investment of private capital, especially foreign investment, is far from satisfactory keeping in mind the estimated investments of the Government under the XIth and XIIth plans. Several issues have been identified which include evolving a robust legislative framework and a well-balanced concession agreement. A major area of concern 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. Apart from litigation, several alternative modes are being followed in India like amicable settlement, mediation, arbitration and expert adjudication. This article analyses the various practices of dispute resolution mandated in central and state legislations, policy documents and industry practices. In an attempt to suggest the most viable approach to dispute resolution in core infrastructure sectors, it will also establish the inter-relationship between private investment and dispute resolution mechanisms.