The government has decided to bring in a new mechanism to resolve commercial disputes of Central Public Sector Enterprises (CPSEs). Once implemented, these entities will not have to approach court and the matter will be resolved within three months.

All these are part of a scheme which was approved by the Union Cabinet at its meeting on Wednesday. The scheme will be applicable for commercial disputes between two CPSEs and also between CPSEs and other government departments/organisations. However, this will not be applicable for the Railways, Income Tax, Custom & Excise Departments disputes. The scheme aims to lower burden on courts, besides saving money for CPSEs.

The Department of Public Enterprises under the Ministry of Heavy Industries will soon issue guidelines in this regard.

The new mechanism will replace the Permanent Machinery of Arbitration (PMA). It has a two-tier system. At the first tier, such commercial disputes will be referred to a committee comprising Secretaries of the administrative Ministries or Departments to which the disputing CPSEs belong. The committee will also have Secretary (Legal Affairs). The Financial Advisors (FAs) of the two concerned administrative Ministries or Departments will represent the issues related to the dispute in question before the above Committee. In case the parties to the dispute belong to the same Ministry/Department, the Committee will comprise Secretary of the administrative Ministry or Department concerned, Secretary (Legal Affairs) and Secretary (Public Enterprises). In such a case, the matter may be represented before the Committee by the FA and one Joint Secretary of that Ministry/Department. Further, in case of a dispute between CPSE and State Government's Department or Organisation, the Committee will comprise the Secretary of the Ministry or Department of the Union to which the CPSE belongs and Secretary (Legal Affairs) and a senior officer nominated by the Chief Secretary of the State concerned. In such a case, the matter may be represented before the Committee by the Principal Secretary concerned of the State Government’s Department or Organisation.

At the second-tier, if any of the party is dissatisfied with the decision of the committee, the matter can be referred to the Cabinet Secretary whose decision will be final and binding on all.

Central varsity in AP

In another decision, the Cabinet approved setting up a central university in Janthaluru village of Ananthapur district in Andhra Pradesh. A total of ₹907.07 crore will be spent on it. The State Government has already allotted land for the university which will be known as ‘Central University of Andhra Pradesh’. The Government claims that the approval would increase access and quality of higher education and help in minimising the regional imbalances in education facilities, and give effect to the Andhra Pradesh Reorganization Act, 2014.

New AIIMS in Jharkhand

In an effort to provide quality health service in tribal-dominated Jharkhand, the Cabinet gave its nod for setting up a new AIIMS in Deoghar, Jharkhand. The Government plans to spend over ₹1,100 crore on the project.

The AIIMS at Deoghar will consist of a hospital with a capacity of 750 beds, trauma centre facilities, a medical college with an in-take of 100 MBBS students per year, a nursing college with an intake of 60 B.Sc.(Nursing) students per year, residential complexes and allied facilities / services.