The Ministry of Power (MoP) has extended its dispute avoidance mechanism to include all power sectors projects, moving beyond hydroelectric power (HEPs) projects.
In September 2021, the ministry proposed a model contract provision using an independent engineer for resolving disputes in the construction contracts of central public sector enterprises involved in HEPs projects. This approach had proven successful in the hydro sector by mitigating time and cost overruns.
To apply this mechanism more broadly, the ministry has now extended it to all power sector projects under its jurisdiction. The standard procedures and payment terms for independent engineers will remain unchanged. The ministry plans to designate a panel of independent engineers with expertise in thermal and transmission sectors.