Lok Sabha Question No. 3376 (UNSTARRED), answered on 2021-08-09
Subject: CPSE‘s Dispute
Ministry: FINANCE
Asked by: Krupal Balaji Tumane

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF PUBLIC ENTERPRISES

## LOK SABHA

## UNSTARRED QUESTION NO. 3376

## TO BE ANSWERED ON THE 9 th  AUGUST, 2021

'CPSE's Dispute'

## 3376. SHRI KRUPAL BALAJI TUMANE :

## Will the Minister of FINANCE be pleased to state:-

- (a) whether the Government has created Administrative Mechanism for Resolution of CPSE's Disputes (AMRCD) and if so, the details thereof;
- (b) the number and details of cases resolved by AMRCD year-wise, Ministry-wise and Public Sector Undertakings (PSUs)-wise during the last three years;
- (c) whether  the  Government  is  aware  of  the  fact  that  the  disputes  of  merging  PSUs  are pending and are unresolved ;
- (d) if so, the details thereof, and if not, the details of unsettled dispute of Hindustan Steel and Consultation  Ltd  (HSCL)  and  National  Thermal  Power  Corporation  (NTPC),  Kahalgaon; and
- (e) whether  the  Ministry  is  aware  of  the  fact  that  under  the  newly  created  AMRCD  the arbitration of merging PSU's are ignored by the parent PSU and if so, the details thereof along with the steps taken by the Government as a guardian of AMRCD?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (DR. BHAGWAT KISHANRAO KARAD)

- (a) & (b): Yes Sir. The guidelines on Administrative Mechanism for Resolution of Commercial Dispute  (AMRCD)  were  issued  on  22 nd May  2018  by  Department  of  Public  Enterprises (DPE)  for  resolution  of  commercial  disputes  between Central  Public  Sector  Enterprises (CPSEs) inter se and also between CPSEs and Government Departments / Organisations.   Under  the  AMRCD,  the  dispute  resolution  falls  within  the  domain  of  the concerned administrative Ministries / Departments to which the disputing CPSEs / Parties belong. The Secretaries of respective Ministries / departments of the disputing parties and Secretary, Legal Affairs are members of the AMRCD mechanism at the first level of dispute resolution.  The  appeals,  if  any,  are  to  be  decided  at  the  second  level  by  the  Cabinet Secretary.   As  per  the  current  information  available  in  DPE,  the  details  of  the  13  cases decided so far in respect of CPSEs of six Ministries under AMRCD are annexed.

(c & d): Resolution of commercial disputes falls within the domain of the concerned administrative Ministries / Departments to which the disputing CPSEs / Parties belong.  In case the two disputing CPSEs belong to the same Ministry / Department, the dispute resolution mechanism comprises of Secretary  of  the  administrative  Ministry  /  Department,  Secretary  (DPE)  and  Secretary  (Legal Affairs).  Three  cases of  HSCL,  a  company  acquired by NBCC (India) Limited is pending under AMRCD. HSCL has submitted three proposals under AMRCD mechanism two relating to HSCL Vs Central Coalfields Limited and  one relating to HSCL Vs NTPC, Kahalgaon. The proposal of HSCL Vs  NTPC, Kahalgaon with complete supporting documents needed for preparation of the proposal for AMRCD was received on 05-08-2021 in Ministry of Housing & Urban Affairs (MHUA).

(e) The administrative Ministries / departments of the disputing CPSEs are regularly sensitized about  the  need  to  resolve  the  pending  disputes  within  the  stipulated  time  lines  given  in  the guidelines issued on 18 th May, 2018.  The last such reference to such Ministries / departments was sent on 20 th July, 2021 and a meeting was also held on 5 th August, 2021.

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| ANNEXURE                                                                                                     | ANNEXURE                                                                                                     | ANNEXURE                                                                                                     | ANNEXURE                                                                                                     | ANNEXURE                                                                                                                                          | ANNEXURE                                                                                                     |
|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
| Statement referred to in reply of part (a) & (b) of Lok Sabha USQ No. 3376 for 09-08-2021 on CPSE's Dispute. | Statement referred to in reply of part (a) & (b) of Lok Sabha USQ No. 3376 for 09-08-2021 on CPSE's Dispute. | Statement referred to in reply of part (a) & (b) of Lok Sabha USQ No. 3376 for 09-08-2021 on CPSE's Dispute. | Statement referred to in reply of part (a) & (b) of Lok Sabha USQ No. 3376 for 09-08-2021 on CPSE's Dispute. | Statement referred to in reply of part (a) & (b) of Lok Sabha USQ No. 3376 for 09-08-2021 on CPSE's Dispute.                                      | Statement referred to in reply of part (a) & (b) of Lok Sabha USQ No. 3376 for 09-08-2021 on CPSE's Dispute. |
| Sr. No.                                                                                                      | Sr. No.                                                                                                      | Ministry                                                                                                     | Claimant                                                                                                     | Respondent                                                                                                                                        | Date of Resolution                                                                                           |
| 1                                                                                                            | 1                                                                                                            | MINISTRY OF HOUSING & URBAN AFFAIRS                                                                          | HINDUSTAN STEELWORKS CONSTRUCTION LTD.                                                                       | CENTRAL COALFIELDS LTD.,                                                                                                                          | 07/09/2018                                                                                                   |
| 2                                                                                                            | 1                                                                                                            | MINISTRY OF HOUSING & URBAN AFFAIRS                                                                          | HSCC (INDIA) LTD.                                                                                            | OIL INDIA LTD.,                                                                                                                                   | 06/12/2018                                                                                                   |
| 3                                                                                                            | 2                                                                                                            | MINISTRY OF MICRO SMALL & MEDIUM ENTERPRISES                                                                 | NATIONAL SMALL INDUSTRIES CORPORATION LTD.                                                                   | UNITED BANK OF INDIA (UBI), KOLKATA                                                                                                               | 16/07/2019                                                                                                   |
| 4                                                                                                            | 3                                                                                                            | MINISTRY OF PETROLEUM & NATURAL GAS                                                                          | ENGINEERS INDIA LTD.                                                                                         | ENGINEERING PROJECTS (INDIA) LTD.,                                                                                                                | 25/06/2018                                                                                                   |
| 5                                                                                                            | 3                                                                                                            | MINISTRY OF PETROLEUM & NATURAL GAS                                                                          | INDIAN OIL CORPORATION LTD.                                                                                  | DREDGING CORPORATION OF INDIA                                                                                                                     | 08/07/2019                                                                                                   |
| 6                                                                                                            | 3                                                                                                            | MINISTRY OF PETROLEUM & NATURAL GAS                                                                          | INDIAN OIL CORPORATION LTD.                                                                                  | NTPC VIDYUT VYAPAR NIGAM LTD.,                                                                                                                    | 20/12/2018                                                                                                   |
| 7                                                                                                            | 4                                                                                                            | MINISTRY OF SOCIAL JUSTICE & EMPOWERMENT                                                                     | NATIONAL HANDICAPPED FINANCE & DEVELOPMENT CORPORATION                                                       | Maharashtra State Handicapped Finance and Development, Department of Social Justice and Special Assistance, Govt of Maharashtra Corporation       | 05/02/2019                                                                                                   |
| 8                                                                                                            | 4                                                                                                            | MINISTRY OF SOCIAL JUSTICE & EMPOWERMENT                                                                     | NATIONAL HANDICAPPED FINANCE & DEVELOPMENT CORPORATION                                                       | Pudhucherry Corporation for Development of Women and Differently Abled Persons Ltd. (PCDWDAP), Department of Social Welfare, Govt. of Pudhucherry | 29/07/2019                                                                                                   |
| 9                                                                                                            | 4                                                                                                            | MINISTRY OF SOCIAL JUSTICE & EMPOWERMENT                                                                     | NATIONAL HANDICAPPED FINANCE & DEVELOPMENT CORPORATION                                                       | Chhattisgarh Nishakatjan Vitt Evam Vikas Nigam, Department of Social Welfare, Govt. of Chhattisgarh                                               | 17/07/2019                                                                                                   |
| 10                                                                                                           | 4                                                                                                            | MINISTRY OF SOCIAL JUSTICE & EMPOWERMENT                                                                     | NATIONAL HANDICAPPED FINANCE & DEVELOPMENT CORPORATION                                                       | Department of Social Security & Welfare, Govt. of Nagaland                                                                                        | 17/07/2019                                                                                                   |
| 11                                                                                                           | 4                                                                                                            | MINISTRY OF SOCIAL JUSTICE & EMPOWERMENT                                                                     | NATIONAL HANDICAPPED FINANCE & DEVELOPMENT CORPORATION                                                       | Department of Social Security & Welfare, Govt. of Nagaland                                                                                        | 17/07/2019                                                                                                   |
| 12                                                                                                           | 5.                                                                                                           | MINISTRY OF ELECTRONICS & INFORMATION TECHNOLOGY                                                             | NATIONAL INFORMATICS CENTRE SERVICES INCORPORATED                                                            | Department of Agriculture & Cooperation Farmers Welfare (DACFW)                                                                                   | 05/09/2019                                                                                                   |
| 13                                                                                                           | 6                                                                                                            | MINISTRY OF POWER                                                                                            | NTPC LTD                                                                                                     | MECON LTD.                                                                                                                                        | 18/11/2019                                                                                                   |