NEW DELHI: ONGC has launched a one-time settlement (OTS) scheme under the Centre’s ‘Vivad se Vishwas-2’ initiative for resolving pending contractual disputes, a move that could end nearly 100 cases involving Rs 1,000 crore in stuck payments .
The settlement criteria envisages 85% of the net amount to be awarded in disputes where court order has been passed on or before April 30 this year. In cases where an arbitral award has been passed on or before January, the settlement amount is set at 65% of the net amount to be awarded.
ONGC awards contracts worth over Rs 30,000 crore annually. It has constituted an internal task force for fast-track clearance of applications under the OTS scheme. The scheme is open till October 31. Settlement applications are to be through the GeM portal. The move is being seen as a win-win for both ONGC and contractors.
