PIB · Government of India ·

NHAI Successfully Defends Chittorgarh-Udaipur Highway Arbitration Case, Safeguarding Public Funds and Securing Counterclaims

Distilled Policy Brief

  • The National Highways Authority of India (NHAI) successfully defended its contractual stance in an arbitration case against Uchit Expressway Pvt Ltd for the 93.5 km Chittorgarh-Udaipur section of NH-76, safeguarding public funds.
  • The arbitral tribunal, constituted under the Society for Affordable Redressal of Disputes (SAROD), dismissed the concessionaire's total claims of Rs 366.53 crore, including a COVID-19 related extension cost claim of Rs 238.18 crore.
  • The tribunal awarded NHAI counterclaims amounting to Rs 33.54 crore, which included recovery for scoped-out work, failure to maintain the highway, and unauthorized toll collections.

⚖️ Mains Analytical & Syllabus Linkages

Analyze how effective contractual management and alternative dispute resolution mechanisms like SAROD protect public finances and ensure accountability in public-private partnership (PPP) highway projects.

🎯 UPSC Prelims Practice Drill

Economy

With reference to the recent arbitration case involving the National Highways Authority of India (NHAI) and Uchit Expressway Pvt Ltd regarding the Chittorgarh–Udaipur section of NH-76, consider the following statements: 1. The arbitral tribunal was constituted under the Society for Affordable Redressal of Disputes (SAROD). 2. The tribunal completely upheld the concessionaire's COVID-19 related extension cost claim of Rs 238.18 crore. 3. The tribunal awarded counterclaims in favor of NHAI, which included recovery for failure to maintain the highway and unauthorized toll collections. Which of the statements given above are correct?

  • [A] 1 and 2 only
  • [B] 2 and 3 only
  • [C] 1 and 3 only
  • [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [C] 1 and 3 only

Statement 1 is correct because the arbitral tribunal was indeed constituted under the Society for Affordable Redressal of Disputes (SAROD). Statement 2 is incorrect because the tribunal dismissed the concessionaire's total claims of Rs 366.53 crore, including the COVID-19 related extension cost claim of Rs 238.18 crore. Statement 3 is correct as the tribunal awarded NHAI counterclaims amounting to Rs 33.54 crore, which included recovery for scoped-out work, failure to maintain the highway, and unauthorized toll collections.

Tark High-Yield Question Bank ⚡ Practice Full Test in Testing Arena ↗

🏛️ Historical Twin PYQ Anchor (2021)

UPSC Prelims 2021

Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.

Forensic Anchor: Cabinet Allocation of Business Rules & NCAP Framework
Examiner Trap Takeaway: UPSC swapped Central Pollution Control Board role with State Pollution Control Boards for state-level monitoring.

📚 Static Syllabus & Constitutional Linkages

Public-Private Partnerships (PPP) in Infrastructure: Understanding BOT (Build-Operate-Transfer), HAM (Hybrid Annuity Model), and EPC models in Indian infrastructure development.
Alternative Dispute Resolution (ADR): Mechanisms like arbitration and mediation used to resolve commercial and infrastructure disputes outside traditional court litigation.