1.14070/14/2016-7PPAT Government of fndia/ ATER MITE Aayogy 2 are (PPP/PAMD Vertical seh te ay tir aa ste ee a] 1IT Bhawan, New Delhi“! Dated: 25% November, 2019 Office Memorndum | ‘Subject: Initiatives to revive the Construction Sector ~ implementation of CCEA ‘decision dated 31 August 2016 regarding ‘The Cabinet Committee on Economic Asie #CCEA") had, pursuant a proposel put foreard by NITL Aajog. oa 31 August 2016 approved various shor-term and long- term measures for reliving iquidity constraints inthe constraction seer. The approved measures inter ala inchude partial (75%) interim payment of challenged artitral awards bby Government Entities to contractors / concessionaire against @ bank guarantee. Follow-up insiractons to tae euid CEA decision were fosued vide NITE Asyog O. of fren number, dated § September 2016, and D.O. Letter of even number dated 16 November 2016. 2. Implementation ofthe CCEA decision has, however, ben impeded by insistence ‘om bank guarantee forthe intzrest component on the aforementioned 75%. Resultant of ‘which, the srctr continues tobe marred by nancial sess with ripple ee throughout {he financial ccomvstem and the brosder economy. In view of the above, NT! Aayog ‘laced a proposal before the CCEA for its consideration, suggesting certain meseures for the eects implementation of CCEA‘ decison of 32 August 2016, 3. The CCEA considered the propose! of RITI Aayog in its mesting held on 20 [November 2018, and approved the flowing: @ Wien respect to arbitral awards decided in favour of the contractors / ‘concesisires, the concerned Government Entity wil ake the decision t initiate ‘proceedings for eeing aide ofthe arbitral award, and any appeaie) thereto, with {he opinion ofa Law Offeer = Atorney-Grneral fr India / the Sobcter-Genera {or India / the Additional Soctor General for indie ~ in consultation with the ‘Deparment of Logal Afra DOLA" atthe Ministry of Law & Jace an per the procedure laid down i this eepect.DOLA is t ensure that the aforementioned process of soliciting and communicating the opinion of Law Olfcer to the Concomed. Govemnmneat Entity is completed within 90 (hi daps of the recs of request, (8) im cases where the Goverment Ensty har chatleged the arbitral werd and, 25 ‘a reaul, the amouat of the arbitral award has not been paid, 75% of such award Sl he paid by the Government Entity tothe contractor / conceosionaie against 2 ‘benk guaraatee only forthe said 75% and nat fr ste interest compenent. With respect to the interest payable to the Government Entity, should the subsequent court order require red of the sid 75%, payment of Une same will be ws por the ‘court ender, non-compliance of which by he contractor / concessionsie would becontempt of cour, And. the concerned Government Entity wit nave the sight © FeTRS cat iucret by way of lgal/ judicial remedis, Is casce where bane Tanatce for the imcrest component has already bes! =Obanred Sr the SST coresssonaire the same be reiined bythe comeerned CERES Ents. Should the court order prescribe a rae of irteres, she sae ae (Gy The concemod Minisice shall sue instructions to the reepetve Goverment ‘Batis for tling necenenry action on the aforesaid reewsure expeditions “4. This in applicable to Government Enter ic all Puble Sector Undertakings (hove) of the Cente! Guvernaent / Autonomous Organinains of the Central He csent/ Special Purpove Vehices (SPU where 50% Uity per cen’ or more of whe Ghitup shure capital io beld by the Cenizal Government / Central Goverment Departments 5. The CCEA approved measures of contained in para 9 hereinabove ste in Continuation of and for the efiective implementation of the CCEA decision deted 3 SRuruot 2016, NIT Aavog commmnicrions f reason thereto (a3 mentioned se para 1 ‘hall stand modiied to the above extent & sara Sina auder Sereary (PARDO) ‘paao05765 To secretaries ofall the Ministries / Departments of Government of it. 2 Sha Anoop Kamar Mendiatta, Secretar. Department of Legal Afsirs, Ministry of Law and Justice: Shastl Bhawan, New Delhi 110001. 13, Me, Rachna Shaky Additional Socretary, Cabinet Secretarial, Rashrapati Bhawer, ‘New Dell 110001 44, Stel anind Shrivastava, Joint Secretary, PMO, South Block, New Det 110001 ‘copy for information to: oP wo Vice Chairman / PSto MoSQ/C) / PS wl Member. 2. Se, PPS to CEO / PPS to Special Sextury