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Highway Project Delays Impact India's Economy

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  Published in Automotive and Transportation on Saturday, January 10th 2026 at 4:17 GMT by Business Today

The Problem: Stalled Projects and Economic Impact

The current situation paints a worrying picture. Numerous highway construction projects across the nation are experiencing significant delays, primarily due to unpaid bills and the costs associated with navigating complex legal proceedings. These delays aren't simply inconveniences; they represent a major impediment to India's overall infrastructure development and have a tangible, negative impact on the economy. Each delay pushes back timelines for improved connectivity, hinders trade and logistics, and ultimately slows down economic expansion.

The sheer scale of the problem is substantial. While specific figures are difficult to pinpoint due to the decentralized nature of the disputes, industry estimates place the value of stalled projects in the billions of rupees. These are not small regional roads; these are critical arteries of the Indian transportation network, intended to connect major cities, industrial hubs, and remote areas.

What is Vivad Se Vishwas-II? A Mechanism for Resolution

The Vivad Se Vishwas scheme itself isn't a new concept. The original scheme, a highly successful initiative, was initially launched to address tax disputes, offering a streamlined process for taxpayers and the government to reach mutually agreeable settlements. Recognizing the need for a similar mechanism in the infrastructure sector, Vivad Se Vishwas-II was introduced. Its core principle is providing a structured arbitration process, allowing contractors and government entities to resolve contractual disagreements outside of the often-lengthy and expensive court system.

The key advantage of Vivad Se Vishwas-II is its promise of faster resolution. Arbitration, when conducted effectively, can significantly reduce the time and financial burden associated with traditional litigation. This is crucial for the highway construction industry, where delays translate directly into increased costs - not just for the builders, but for the government and ultimately, the public.

Why Isn't It Being Used? & The NHBF's Plea

Despite its potential benefits, Vivad Se Vishwas-II hasn't seen widespread adoption. Several factors likely contribute to this underutilization. These may include a lack of awareness among stakeholders, perceived complexities in the process, and a hesitancy to deviate from established legal procedures. Furthermore, bureaucratic inertia and the inherent challenges in implementing new processes within large governmental organizations can also play a role.

The NHBF's recent appeal highlights the urgency of the situation. Their request is timely, coinciding with the government's renewed focus on infrastructure development as a key driver of economic recovery and growth. A successful revival of Vivad Se Vishwas-II would send a clear signal of the government's commitment to addressing long-standing issues and ensuring the timely completion of these vital highway projects.

Looking Ahead: Potential Benefits and Considerations

The revival of Vivad Se Vishwas-II isn't a guaranteed solution, but it offers a compelling pathway forward. If implemented effectively, it could lead to:

• Faster Project Completion: Significantly reducing delays and expediting the delivery of critical infrastructure.
• Reduced Costs: Minimizing the financial burden associated with legal battles and prolonged project timelines.
• Improved Contractor Confidence: Fostering a more stable and predictable environment for infrastructure development.
• Boost to Economic Growth: Accelerating connectivity and logistics, contributing to overall economic expansion.

However, the scheme's success hinges on several factors. The government needs to actively promote its use, simplify the process, and ensure that it's accessible to all stakeholders. Clear guidelines and efficient arbitration mechanisms are essential. Moreover, a commitment to upholding the decisions reached through arbitration is paramount to building trust and encouraging participation. The NHBF's request is a critical step toward unlocking India's highway infrastructure potential and achieving the nation's ambitious economic goals.