Govt streamlines rules for settlement of disputes among CPSEs

The department of public enterprises (DPE) has streamlined the existing guidelines for settlement of commercial disputes among central public sector enterprises (CPSEs). It has institutionalised a better monitoring mechanism for faster resolution of disputes.

According to the latest notification, the decision taken by the committee of secretaries (CoS) / appellate authority will be implemented by the concerned CPSEs within one month from the date of the decision. And, the action would be updated on the web portal of the DPE. 

In 2018, the DPE had issued an office memorandum, wounding up the Permanent Machinery of Arbitration (PMA) for settling such disputes.

It transferred all pending cases to a new decentralised Administrative Mechanism for Resolution of CPSEs Disputes (AMRCD) having two tiers. A CoS formed the first level and the cabinet secretary was at the second level.

“The changes in dispute resolution have been made to make the mechanism more effective and binding. There were certain occasions on which certain CPSEs failed to comply with the norms and they directly approached the cabinet secretary for resolution,” an official said.

An appeal against the decision of the CoS can be made before the cabinet secretary at the second level within 30 days of the receipt of the decision. Earlier, this appeal had to be made within 15 days.

At the first level, the committee would consist of secretaries of the administrative ministries / departments to which the disputing CPSEs / parties belong as well as the secretary in the department of legal affairs. If the disputing parties belong to the same ministry / department, the DPE secretary will also be a part of the committee.

“In case the dispute remains unresolved, even after consideration by the above committee, the same will be referred through DPE at the second level to the cabinet secretary, whose decision will be final and binding on all concerned,” the statement said.

This mechanism excludes disputes relating to railways, income tax, Customs and the excise department.

The DPE would be the nodal agency for capturing all details related to Administrative Mechanism for Resolution of CPSEs Disputes (AMRCD) cases through its portal (psesurvey.nic.in).

The portal will also have the monthly report about pending cases, which will be sent to the cabinet secretariat. The portal will also be the platform to raise an appeal to the cabinet secretary.