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The National Highways Authority of India has introduced a transformative policy circular that fundamentally restructures how infrastructure disputes are resolved. This new value-based approach eliminates traditional multi-tier mechanisms, establishing clear thresholds that determine whether conflicts proceed to arbitration or alternative resolution pathways. The reform promises to significantly impact how stakeholders navigate disagreements in India's infrastructure sector.
Jigar Trivedi’s articles from IndiaLaw LLP are most popular:
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IndiaLaw LLP are most popular:
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In this episode of Podcast Bites by IndiaLaw LLP, host Jigar Trivedi breaks down NHAI Policy Circular No. 11.82 of 2026, a major reform reshaping dispute resolution in infrastructure projects. Issued by the National Highways Authority of India, the policy replaces the traditional multi-tier mechanism with a value-based approach, where disputes below ₹10 crore proceed to arbitration, while higher-value claims are diverted to conciliation or civil courts under the Arbitration and Conciliation Act, 1996.
This shift has significant implications for concessionaires, lenders, and EPC contractors, impacting enforceability, project cash flows, and bankability. By removing binding arbitration for large claims and applying the change retrospectively, the policy raises critical concerns around contractual certainty and dispute resolution efficiency in India’s infrastructure sector.
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