DPE Limits AMRCD To CPSE Disputes Only

New Delhi: Privatized central public-sector enterprises (CPSEs) may not be able to resolve disputes at the mechanism available to them as government-owned companies. The Department of Public Enterprises (DPE), under the Ministry of Finance, has made it clear that the Administrative Mechanism for Resolution of CPSEs Disputes (AMRCD) does not cover disputes involving private entities, official sources told Bizz Buzz.

As per an earlier DPE order, all government departments and organizations should take any disputes with CPSEs to the AMRCD. The order, however, excludes the disputes related to the railways and income, customs and excise departments. The DPE also directed government departments and organizations that the interpretation and application of commercial contracts in the case of disputes ‘shall be taken up under the AMRCD only.’

If a case is registered between two or more CPSEs, and later one of them gets privatized, the registered case may be allowed to be deleted by the DPE from the AMRCD portal at the request of the claimant administrative ministry or department. This can be done even if the Committee of Secretaries has been constituted.

The AMRCD has two levels. At the first level (tier 1), the disputes shall be arbitrated by a committee comprising secretaries of the administrative ministries and departments to which the disputing CPSEs belong and Secretary, Department of Legal Affairs.

In case the two disputing parties belong to the same ministry or department, the committee will comprise the Secretary of the administrative ministry or department concerned, Secretary, Department of Legal Affairs, and Secretary, DPE. In case of a dispute between CPSE and a State government department, the matter shall be arbitrated through a committee comprising the Secretary of the ministry or department to which the CPSE belongs, Secretary, Department of Legal Affairs, and a senior officer (not below the rank of secretary in the State government) nominated by the Chief Secretary of the state concerned.

Any party aggrieved with the decision of the committee at the first level (tier 1) may prefer an appeal before the Cabinet Secretary at the second level (tier 2) within 30 days from the date of receipt of the decision of the committee at the first level.