{"id":210809,"date":"2022-10-17T20:15:24","date_gmt":"2022-10-17T14:45:24","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=210809"},"modified":"2022-10-17T20:15:24","modified_gmt":"2022-10-17T14:45:24","slug":"state-owned-firms-must-play-by-the-same-rules","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/state-owned-firms-must-play-by-the-same-rules\/","title":{"rendered":"State-owned firms must play by the same rules"},"content":{"rendered":"\n<p><strong>Source<\/strong>: The post is based on an article\u00a0<strong>\u201c<\/strong><strong>State-owned firms must play by the same rules\u201d <\/strong>published in\u00a0<strong>Live Mint<\/strong>\u00a0on\u00a0<strong>17<sup>th<\/sup> October 2022<\/strong>.<\/p>\n<p><strong>Syllabus: GS 3 \u2013 Economic <\/strong><strong>Growth and Development<\/strong><\/p>\n<p><strong>News: <\/strong><strong>The tussle<\/strong> between Delhi Airport Metro Express Pvt Ltd (DAMEPL) and Delhi Metro Rail Corporation Ltd (DMRC) highlights the issue of payment delays made by government companies.<\/p>\n<p><strong>What are the issues?<\/strong><\/p>\n<p>DAMEPL is private company, a subsidiary of Anil Ambani\u2019s Reliance Infrastructure.<\/p>\n<p>DAMEPL was involved with DMRC over construction of the high-speed metro lines from the airport to the city. However, due to the track safety concerns the project was stopped within 18 months.<\/p>\n<p>DAMEPL further terminated the concession agreement with DMRC which led to the issue between the two.<\/p>\n<p>Moreover, DAMEPL won an arbitral award of about\u00a0\u20b93,000 crore plus interest under the deal\u2019s break-up terms in 2017. This amount was to paid by the DMRC to DAMEPL.<\/p>\n<p>But DMRC has been continuously delaying paying the amount to the DAMEPL despite of multiple deadlines set by the judiciary.<\/p>\n<h5><strong>This has highlighted the dismal condition of India in the payment of arbitral award. <\/strong><\/h5>\n<p>There are also <strong>other instances<\/strong> where India has failed to comply. <strong>For example<\/strong>, Vodafone and Cairn issues and Antrix to Devas Multimedia\u2019s award.<\/p>\n<p>These <strong>kind of failures by the state to pay compensation (arbitral award) to companies<\/strong> hampers the image of India globally and affects it sovereign credit rating.<\/p>\n<p>It also <strong>affects the interest of the investors to invest<\/strong> in the state-run projects due to the safety of their investments.<\/p>\n<p>Therefore, there is a need that India must look into the issue and follow the contract guidelines with the private firms.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on an article\u00a0\u201cState-owned firms must play by the same rules\u201d published in\u00a0Live Mint\u00a0on\u00a017th October 2022. Syllabus: GS 3 \u2013 Economic Growth and Development News: The tussle between Delhi Airport Metro Express Pvt Ltd (DAMEPL) and Delhi Metro Rail Corporation Ltd (DMRC) highlights the issue of payment delays made by government&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/state-owned-firms-must-play-by-the-same-rules\/\">Continue reading <span class=\"screen-reader-text\">State-owned firms must play by the same rules<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-210809","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700806638,"cached_date":1704708828},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/210809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=210809"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/210809\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=210809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=210809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=210809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}