Power ministry approves formulation of robust dispute avoidance mechanism

The Ministry of Power (MoP) has approved the formulation of dispute avoidance mechanism for construction contracts of central public sector enterprises executing hydro power projects.

The dispute avoidance mechanism mandates the appointment of independent engineers, who is an expert having domain knowledge of the subject as well as commercial and legal principles. The independent engineer will have regular oversight over the project, with open communication with all the key stakeholders that can play an effective role in the avoidance of disputes. This mechanism seeks to reduce the conversion of initial disagreements into full-fledged disputes, and also for expeditious elimination of disagreements in a just and fair manner. This will help avoid time and cost overruns besides ensuring timely completion of the projects.

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