Govt frames rules for release of 75 per cent of amount stuck in arbitration in construction sector

The government has framed rules that will allow the release of 75 per cent of the amount awarded to contractors against a bank guarantee in cases where a department has challenged an arbitral award. The CCEA had, in November 2019, permitted government departments to pay contractors 75 per cent of the amount awarded to a contractor by a dispute settling arbitration panel. This was to be done in cases where the arbitration award has been challenged.