‘ }. Companies. Manas Pimpalkhare 4-minute read 17 October 2024, 5:09 PM IST. ONGC donates ₹23 crore to the PM CARES Fund. (Photo: ) (Reuters). The PSU will refrain from participating in arbitrations for public procurement contracts when the contested sum surpasses ₹10 crore. This decision comes shortly after Oil India announced its withdrawal from this costly dispute resolution method in response to a finance ministry recommendation. New Delhi: Oil and Natural Gas Corp. (ONGC), which is state-owned. ONGC will refrain from arbitration in public procurement contracts if the amount in dispute is more than ₹10 crore. This decision comes shortly after Oil India Ltd (OIL) announced it would also avoid this costly dispute resolution method following an advisory from the finance ministry. For disputes under ₹10 crore, ONGC will utilize the India International Arbitration Centre (IIAC) in New Delhi, which is led by a former Supreme Court judge. This move aligns with the finance ministry’s advice from June, which urged all government entities to limit arbitration proceedings exceeding ₹21023 crore in domestic procurement contracts to reduce disputes and financial costs. ONGC has adopted the guidelines set by the Ministry of Finance as detailed in their office memorandum dated 216. 23.5 relevant for government domestic public procurement. A representative from ONGC stated in an email response to Mint’s inquiry about “Entities.” Additionally, read about how Oil India is the first public sector unit to lower arbitration following the finance ministry’s guidance.
