Endowment Lecture on “Efffective Resolution on Contruction Disputes” held today

Hyderabad, Oct 10 The Institution of Engineers (India) IEI, Telangana State Centre organized Er R L Raju Sixth Endowment Lecture on “Effective Resolution on Contruction Disputes” Dr Sridhar Mothe, Fie, Head-Contracts and Claims Building Division, NCC Ltd, Hyderabad. During his address in India construction industry contributes to about 11% of GDP sector wise. After the agriculture sector which has 16% contribution to GDP, construction is rated second in terms of employment generation in the country. With significant contribution to national economy, construction sector provides direct and indirect employment to around 3.5 crores population in India. In our country construction has accounted for around 40% of development investment in last 50years. After economic reforms in 1990 post liberalization, there has been spurt in construction activity with all round development in Infrastructure across various sectors.
Also said that ehere are projects to be implemented in major way for development of roads, highways, ports, airports, expressways, metro rail projects , industrial and dedicated freight corridors,
rail networks, housing and urban infrastructure development in the next five years. With this the plan outlay in construction is estimated Rs. 8 Lakh crores per anum. There are plans to develop 100 smart cities in country which will give boost to economic activity and construction sector. After recovery from the Covid-19 Pandemic, within next three years the value of construction industry is expected to touch US$ 730 billion by 2022 with massive investments in infrastructure growth. Construction sector is undergoing various challenges and facing problems with respect to project implementation schedules. Many of the projects are getting delayed in completion schedules resulting in time and cost overruns. Because of this there are disputes pending in construction industry in arbitration tribunals and courts. As per a survey it is estimated that presently disputed amounts by way of unresolved claims in construction sector amount to Rs.1,00,000 crores (One Lakh Crocres). This is alarming and deterrent to growth of the industry.
He further said that the Govt. has initiated numerous measures for encouraging alternative dispute resolution (ADR) methods by way of amendments to the Arbitration and Conciliation act in 2019. Also formation of Arbitration Council of India (ACI) for accrediting the Arbitral Institutes for promotion of institutional arbitration is on anvil. To compete globally and to attract more foreign investments, it is imperative to make India a global hub for administering international arbitrations. Fair contract administration practices and speedy, cost effective dispute resolution approaches are need of the hour for harmonious growth.
Dr G Rameshwar Rao, FIE, Chairman, IEI, TSC welcomed the gathering and Presided over the
function. Er V Jambul Reddy, FIE, Member, IEI, TSCC briefed about the Chief Guest and Speaker,
Er T Anjaiah, FIE, Hon. Secretary, IEI, TSC proposed vote of thanks. (NSS)

 

DO YOU LIKE THIS ARTICLE?