Highway builders ask finance ministry to revive Vivad se Vishwas scheme to expedite dispute resolution

The National Highways Builders Federation (NHBF) has urged the finance ministry to revive the Vivad se Vishvas II (Contractual Dispute) scheme or notify a similar one-time settlement window, specifically for the road sector and other core infrastructure sectors to provide a much needed impetus for early closure of legacy disputes.

“Revival of the scheme, with suitably extended cut-off dates and timelines, will help improve cash flows for project authorities as well as contractors and further strengthen the government’s stated commitment to ease of doing business and timely dispute resolution in public contracts,” it said in its submission, dated 9 January 2026, to the finance minister Nirmala Sitharaman.

According to NHBF, despite the positive outcomes under the erstwhile scheme, a substantial number of contractual disputes with the ministry of road transport and highways and the National Highways Authority of India remain unresolved, leading to continuing accrual of interest liabilities for the authorities and severe strain on the balance sheets and cash flows of concessionaires and contractors.


“The prolonged litigation adversely affects both parties and dampens investor sentiment in the sector,” it said, citing the long drawn process of dispute settlement in the sector.