India’s infrastructure ambitions will require dispute-resolution mechanisms that are commercially effective, faster and better aligned with the realities of long-term projects, legal and industry leaders said at the ETLegalWorld Commercial Disputes Conclave 2026.
Speaking during the panel Building India: Law, Policy & Dispute Resolution in Infrastructure, the speakers highlighted how regulatory complexity, delayed approvals, weak risk allocation and reluctance among public authorities to take settlement decisions often push disputes into prolonged arbitration or litigation.
Ajay Kapoor, Chief (Legal, Regulatory and Advocacy), Tata Power Company Limited, said the power sector operates within specialised adjudicatory frameworks under the Electricity Act, with many technical and commercial disputes going first to regulatory commissions and appellate authorities. He noted that government efforts are increasingly focused on resolving disputes before they enter litigation, including through mediation involving senior leadership and independent experts.
Dr. Sunil Kumar Mittal, Group General Counsel, Kalpatru, said infrastructure disputes often originate much earlier than formal proceedings. Delays in land availability, right of way and statutory clearances are frequently known risks, yet contracts may allocate them disproportionately.
“The risk allocation in the contract unfortunately is skewed,” he said, adding that public-sector decision-makers can also hesitate to acknowledge responsibility for delays because of concerns around subsequent scrutiny. He called for stronger commercial courts, trained judges and adequate infrastructure if governments increasingly move away from arbitration.
Dispute avoidance begins before the contract
Rajarshi Sen, General Counsel, Siemens Energy India Limited, argued that effective dispute management starts with due diligence, counterparty selection and relationship building rather than after a dispute arises.
“You have to first take a step back and think: are we doing transactions or are we building partnerships?” he said.
Sen warned that ineffective remedies in public procurement could have a larger investment impact. Companies will be reluctant to add capacity, he said, if contract enforcement and revenue visibility remain uncertain. “The fact that there has been 25 years of litigation is not something that’s against the litigants. It’s against the entire country and against that entire hope for growth.”
Renewable projects expose allocation gaps
Ashish Pandey, Head – Governance, Compliance and Company Secretary, Hero Future Energies, said renewable developers face risks they may be contractually assigned but cannot fully control, particularly around land, transmission connectivity and government approvals.
He said early-warning systems, milestone-based escalation and closer monitoring of counterparties are essential. For 25-year power contracts, developers must also assess payment behaviour, financial strength and credit support rather than rely only on contractual protections.
Gaurav Khanna, Head of Litigations & Advisor on Sustainability, Nestle India Limited, stressed that arbitration clauses themselves should not become another source of dispute. They should clearly define the seat, venue, process and scope of reference while enabling resolution rather than adding procedural complexity.
Across the discussion, the panelists agreed that infrastructure growth depends not only on capital and policy ambition, but also on whether contracts allocate risks realistically and disputes can be resolved before delay itself becomes a commercial loss.
The remarks came as the fifth edition of ETLegalWorld Commercial Disputes Conclave 2026 is currently underway in New Delhi, bringing together legal professionals, policymakers, industry leaders and dispute resolution experts to discuss the evolving commercial justice ecosystem. The conclave, themed “Building Trust, Speed & Certainty in India’s Commercial Justice Ecosystem,” is examining the institutional and legal reforms needed to strengthen India’s position as a trusted destination for global business, investment and dispute resolution.
