New Delhi, Oct. 1 -- Public sector undertakings (PSUs) are beginning to insert mediation clauses in their contracts, in a shift away from their usual reliance on arbitration, as they look for quicker, less expensive, and more amicable ways to resolve their commercial disputes, two people aware of the development said.

Infrastructure agencies such as the National Highways Authority of India (NHAI) Ltd, which has about a trillion rupees worth of claims undergoing arbitration, have also started using mediation clauses in certain contracts, the people cited earlier, who work on PSU disputes, said on the condition of anonymity.

"PSUs, especially those in the infrastructure sector, are increasingly adopting mediation for dispute resolution. T...