Dispute Resolution Or Procedural Labyrinth? Revisiting The NHAI Conciliation Mechanism

Introduction

The National Highways Authority of India ("NHAI"), as the central agency leading the development of road infrastructure in India, has a history of numerous disputes resulting from complex concession and engineering contracts. These controversies, often involving significant claims, have frequently led to prolonged arbitration or litigation, placing substantial strain on the interested parties in fiscal and administrative terms. In a significant institutional response, NHAI has, since 2017, introduced a formal system for conciliation and settlement to reduce this litigious trend and promote quicker resolution of contractual disputes.

This article explores the origin, structural development, and operational outlines of the NHAI conciliation mechanism, leading to the issuance of the Standard Operating Procedures (SOPs) last amended in June 2025. It also discusses the legal requirements in Articles 26, 38, and 44 of the Standard Concession Agreements