News:Government has constituted a Committee of External Eminent Persons/Experts for time-bound resolution of disputes in Oil and gas sector.
About the committee:
- The committee will consist of three members.It will help the oil and gas sector get rid of disputes without having to resort to tardy judicial process.
- The committee will have a tenure of three years and the resolution will be attempted to be arrived at within three months.
- The panel will arbitrate on a dispute between partners in a contract or with the government over commercial or production issues for oil and gas.
- It shall exercise all powers and discharge all the functions necessary for carrying out conciliation and mediation proceedings as per the provisions of the Arbitration and Conciliation Act,1996.
- Once a resolution has been referred to the panel, the parties cannot resort to arbitration or court case to resolve it.
Significance of this committee:
- The country’s oil and gas sector has been plagued by disputes from cost recovery to production targets and companies as well as the government have resorted to lengthy and costly arbitration followed by judicial review, a process that takes years to resolve differences.
- Hence,this decision may lift overall business sentiment, especially in the oil and gas sector which in return will help the sector get rid of disputes choking investment in it.