Bill likely for PPP projects dispute resolution

Economic affairs secretary Shaktikanta Das said on Friday that the Centre is likely to introduce a bill for dispute resolution in PPP projects and public utility contracts in the upcoming Parliament session.

He said that a parliamentary panel is too expected to submit its report on the Bankruptcy and Insolvency Code on April 29 and the government would also push for its passage in the upcoming session. Mr Das also expressed hope that banks will cut interest rates over the next few days.

The enactment of the public utility bill would provide a legal framework for speedier resolution of disputes in PPP projects. “We are working on that public utility dispute resolution bill. We are trying best to introduce in... Bud-get Session, but we need to complete a lot of work. The draft is ready. It’s our endeavour to introduce it in the Budget Session, but if not then it will be certainly introduced in the Monsoon Session of Parliament,” said Mr Das.

The new law will deal with construction contracts, PPP contracts or any other contract which involves a public utility authority and a private contractor. The Budget Session will resume later this month during which the demands for grants and Finance Bill 2016 will be taken up for consideration and passage.

On interest rates, Mr Das said banks are expected to cut interest rates over the next few days in light of the recent monetary policy easing by RBI. “Banks are autonomous and the government has given a very strong signal by maintaining the fiscal deficit at 3.5 per cent and resetting small savings rates. RBI has reduced the policy rate by 25 basis points. One would expect banks to take a policy call and I am sure they would do it in the days and weeks to come,” he said.

“We would expect the banks to do a more effective transmission of rates. I do expect banks to take steps in that direction,” he said. The secretary said India is moving towards a low interest rate regime as inflation is under control. “We are looking at a regime of low interest rates, thanks to inflation being under control and various measures which the government has taken,” he added.