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The National Highways Builders Federation (NHBF) has urged the Finance Ministry to revive the Vivad se Vishwas II scheme or introduce a similar one time settlement mechanism for road and core infrastructure projects. The federation highlighted that unresolved contractual disputes, especially with the National Highways Authority of India (NHAI) and the Ministry of Road Transport and Highways (MoRTH), are straining contractors and authorities finances, affecting cash flows and project execution. NHBF proposed extended timelines and broader coverage under a revived scheme to improve dispute resolution and restore investor confidence in the sector.
The National Highways Builders Federation (NHBF) has formally requested the Finance Ministry to bring back the Vivad se Vishwas II scheme or implement a similar one-time settlement framework specifically for road and core infrastructure projects. The federation emphasized that numerous unresolved contractual disputes continue to weigh heavily on contractors and project authorities, particularly those related to the National Highways Authority of India (NHAI) and the Ministry of Road Transport and Highways (MoRTH). Advertisement
NHBF noted that despite the previous scheme, many cases remain pending, leading to growing interest liabilities and financial pressure on concessionaires and contractors. These unresolved disputes have slowed down ongoing projects and affected participation in new bids, impacting investor sentiment and overall sector growth. The federation stressed that resolving these legacy disputes quickly is essential to unlock funds tied up in pending cases and to improve the financial health of the companies involved.
In its submission, NHBF proposed that if the government revives the settlement scheme, cut off dates and timelines should be suitably extended to include as many pending disputes as possible. The federation believes that a broader and well-timed window will help resolve a large portion of cases efficiently, freeing resources for project execution and ensuring smoother cash flow management.
The earlier Vivad se Vishwas II scheme was designed to settle contractual disputes by offering structured settlement terms, helping parties avoid prolonged litigation. It provided a process through the Government e-Marketplace (GeM) portal, with defined thresholds for court and arbitration awards. While it had some success in clearing cases, many disputes remain unresolved, creating uncertainty for contractors and project authorities alike.
NHBF emphasized that a revived or new settlement framework would not only address these legacy cases but also reinforce government commitment to easing business processes and improving investor confidence in the infrastructure sector. Timely resolution of disputes is seen as a necessary step to ensure smoother project execution and to support future investments in highway and core infrastructure projects.
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