Banks have urged the government to restore arbitration for infrastructure disputes above Rs 10 crore, arguing that the scrapping of this option could choke credit to the sector over fears of mandatory mediation and court-led resolution and delay in recoveries, said people familiar with the development. In January, the road transport and highways ministry had done away with the option and shifted resolution of high-value highway disputes of more than Rs 10 crore to mandatory conciliation and mediation followed by an appeal in the civil courts by amending the contract agreements. Banks are wary of lengthy court litigation for high-value claims, according to the people, who spoke on condition of anonymity. "Arbitration plays an important role in expeditious dispute resolution and overall stability in infrastructure financing," said a bank executive, adding that the issue was flagged to the finance ministry earlier this month. A senior government official said that the matter had been raised at the highest level as the arbitration procedure for all projects, which was in place earlier, ensured certainty in contractual enforcement, expeditious dispute resolution and overall stability in infrastructure financing.