MoP makes conciliation committees to help CPSUs in dispute resolution

The Ministry of Power (MoP) has introduced a conciliation mechanism for the settlement of contractual disputes in the contracts of CPSUs / statutory bodies under MoP executing power projects.

In order to help CPSUs, three Conciliation Committees of Independent Experts (CCIEs) have been constituted:

Each CCIE will comprise 3 members with a high level of integrity and proven track record. The members will be appointed from amongst the following categories:

1. Former officers of the rank of Secretary/ Additional Secretary to the Govt. of India
2. Sector experts having substantial domain knowledge of project development and O&M of power projects.
3. Experts in finance with experience in senior positions of financial institutions.

 Some other key details released by MoP are as follows:

• The panel of independent experts will remain valid for 3 years from the date of formation and the validity can be extended but not beyond a total tenure of 5 years.
• Each member of CCIE will be paid Rs. 50,000 as sitting fee per sitting. Additionally, Rs. 5,000 per sitting will be paid for local transport charges for each day of the proceeding.
• The conciliation proceedings will be completed in each case through 5 sittings, barring exceptions.
•  On receipt of a reference from the contractor for conciliation of dispute, the concentred head of project (developer) will send a communication within 7 working days.
• The contract department (developer) will obtain details and examine the correspondence   of ether parties relating to disputes, normally within 30 days.
• Once a conciliation request has been raised by the contractor, within 30 days the same will be referred to the CCIE in the event of the matter remaining unresolved internally.

 For complete details of the CCIE, click here.

.A notification was issued on 07.01.2022 inviting Expression of Interest from the eligible candidates for empanelment as Independent Expert for the constitution of the CCIEs. Consequently, with the approval of the Minister of Power, a Search-cum-Selection Committee was also constituted for the scrutiny of the EoIs as well as screening of the candidates.