SAROD-Ports: Dispute Resolution Mechanism launched

SAROD-Ports: Dispute Resolution Mechanism launched

Part of: GS Prelims and GS-III – Ease of Doing Business

In news

• ‘SAROD-Ports’ (Society for Affordable Redressal of Disputes – Ports) through virtual ceremony in New Delhi was recently launched.
• Launched by: The Union Ministry of Shipping 

Key takeaways

• Established under:  Societies Registration Act, 1860.
• ‘SAROD-Ports’ is similar to provision available in Highway Sector in the form of SAROD-Roads constituted by National Highways Authority of India (NHAI).
• Composition: Members from Indian Ports Association (IPA) and Indian Private Ports and Terminals Association (IPTTA).
• Functions: (1) SAROD-Ports will advise and assist in settlement of disputes through arbitrations in the maritime sector.
• Benefits: (1) SAROD-Ports will become the pivotal mechanism of ummeed (hope), vishwas (trust) and nyaya (justice) in the Port sector of India; (2) It will lead to saving huge amounts of legal expenditure and time; (3) Enforcement of concession agreements in the letter and spirit.

Do you know?

• A concession agreement is a contract that gives a company the right to operate a specific business within a government’s jurisdiction or on another firm’s property, subject to particular terms.
• It will promote ease of doing business in the maritime sector because of the fast, timely, cost effective and robust dispute resolution mechanism.
• It will inspire confidence in the private players.