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To address the application of Insurance Surety Bonds (ISB) for NHAI contracts, NHAI arranged a workshop in New Delhi. Reviewing developments and promoting broader instrument usage were the goals. Key NHAI executives as well as representatives from a range of stakeholders, such as insurance companies, industry groups, and ministries within the central government, gave speeches during the session.
For all government procurements, Insurance Surety Bonds and Bank Guarantees are equivalent, according to the Ministry of Finance, Government of India. They should be used as an extra means of presenting Performance Security and/or Bid Security, according to NHAI’s advocacy. 164 Insurance Surety Bonds have been sent to NHAI; 20 of them are for performance security and the remaining 144 are for bid securities.
Different insurance firms have issued over 700 Insurance Surety Bonds worth about Rs. 3,000 crores. The workshop’s panellists promoted the broader use of ISB for NHAI contracts by outlining its advantages. The event also covered obstacles and strategies for accelerating the instrument’s adoption.
Protection With surety bonds, insurance firms offer monetary assurances that contractors will carry out their responsibilities. It is anticipated that increased use of these tools would support the nation’s infrastructure development.
Group Media Publication
Construction, Infrastructure and Mining
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