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By Manoj Kumar
NEW DELHI, Feb 10 (Reuters) - India plans to amend itsarbitration law, setting time limits for courts and easingjudicial rules to decide corporate disputes, as it seeks toattract more foreign investment, Law Minister Sadananda Gowdasaid on Tuesday.
Many domestic and foreign companies, such as Britishtelecoms major Vodafone, prefer Singapore, Hong Kong andLondon as arbitration venues, since winning final settlementsfrom Indian courts can take years.
The World Bank rates India 186th out of 189 countries forits enforcement of contracts. Prime Minister Narendra Modi haspromised judicial reforms and other steps to lift India up theWorld Bank's Doing Business Index.
"Billions of dollars are blocked in legal disputes inIndia," Gowda told an industry event. "There is a need toestablish a speedy, cost-effective and efficient disputesresolution mechanism."
Parliament was expected to approve amendments to thearbitration law in the coming session, he added, which wouldhelp attract more investment and settle disputes.
The next parliament session begins on Feb. 23, with FinanceMinister Arun Jaitley due to present his budget for the fiscalyear ending in March 2016.
The government also plans to set up separate commercialcourts to speed the resolution of corporate disputes, a move that could unlock billions of dollars in investments, Gowdasaid.
A government panel has suggested limiting courts' authorityto overrule arbitration awards and fixing time limits and feesto settle legal cases.
The government earlier deferred plans to issue an executiveorder to amend the law, as it wanted parliamentary approval,Gowda said.
Sums ranging in the billions of dollars are leaving Indiaevery year in arbitration costs headed overseas, industrychamber ASSOCHAM said in a report, with Singapore the mostpopular site for arbitration cases filed by Indians.
Scores of projects worth more than 4 trillion rupees ($64billion) are under litigation in different courts and tribunals,the report said.
"Delay in the timely disposal of high-value cases is leadingto a drop in GDP," said D.S. Rawat, secretary general of ASSOCHAM. "If it could be tackled, it would expand economicactivity and provide more avenues for jobs." ($1=62.0500 Indian rupees) (Reporting by Manoj Kumar; Editing by Clarence Fernandez)
