In order to push the construction sector, Union Finance Minister Arun Jaitley on Wednesday said that the Union Cabinet has approved fresh norms for the sector.

“Construction sector contributes eight per cent to the GDP,” Jaitley said, adding that, “there are various challenges before the construction sector and the government has been trying over the last year to improve upon the functioning of the sector”.

Highlighting some advantages of the new norms, Jaitley said, “Wherever there are disputes pending between public bodies and construction sector under the old arbitration Act, which was time consuming, there will be an option with consent to shift toward to the new arbitration procedures where there is a procedure for a cheaper and quicker arbitral process”.

“In all new contracts relating to construction, there will be a conciliation board provision and this broad will comprise of independent subject experts,” he added.

Talking about the conciliation board, the finance minister said, “This is being done because when commercial circumstances change and public servants are reluctant to participate in the renegotiations there will be a contractual mechanism under which those terms could be renegotiated without bringing to project to a standstill”.

"Department of Financial Services & RBI will evolve a suitable one-time scheme for addressing stressed bank loans in the real estate sector," Jaitley said.