Govt panels to promote ease of doing biz
While one panel will find ways to improve contract enforcement, other will look at speedy dispute resolution
Federal policy think tank NITI Aayog has set up two task forces to find ways of improving enforcement of contracts in the country and enable reconciliation between government and private parties in the event of disputes, it said on Monday. Improvements in these areas are expected to make it easier to conduct business in India.
The task force on enforcement of contract will give suggestions for a policy framework that would include setting up dedicated commercial courts with sufficient infrastructure, NITI Aayog said.
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This will be chaired by the think tank’s vice chairman Rajiv Kumar and will give its proposals in six months. Chief executive officer Amitabh Kant will be the member secretary of the task force, which will include secretaries to various government departments and chief secretaries of some states, including Maharashtra, Gujarat and Andhra Pradesh.
The second task force studying speedy resolution of contractual disputes between government entities and private parties, including investors and contractors, will be chaired by Kant. This panel, whose members will be from various government departments, will recommend an effective reconciliation mechanism.
Among the measures being considered is the deployment technology for random and automated assigning of cases, expected to improve efficiency by eliminating human errors. The mediation and settlement route is also being considered as an alternative for dispute resolution. Besides a policy framework, the task force will also suggest procedural steps to help improve the reconciliation process. The proposals will be made after analysing the Arbitration and Conciliation Act of 1996.
Mint reported on 5 March, quoting Kumar, that NITI Aayog has started a drive to eliminate key obstacles to ease of doing business at the level of courts and state governments to improve India’s investment climate. India’s ranking in the World Bank’s ease of doing business improved after Prime Minister Narendra Modi’s government made it a priority. India’s ranking shot up from 142 in 2014 to 63 in 2019.
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