Thursday, July 10, 2025
  • Home
  • About us
  • Privacy policy
  • Advertise with us
  • Contact us
Fii News Logo
No Result
View All Result
  • Tenders
  • Projects
  • Markets
  • Manufacturing
  • Investment
  • Technology
  • Exports
Newsletter
  • Tenders
  • Projects
  • Markets
  • Manufacturing
  • Investment
  • Technology
  • Exports
Fiinews
No Result
View All Result
Home Tenders

Tenders: NHAI Accepts First Insurance Surety Bond as Bid Security for NHAI TOT for Monetization

Fiinews by Fiinews
November 12, 2023
in Tenders
Reading Time: 2 mins read
A A
0
NHAI.
0
SHARES
10
VIEWS
LinkedinShare on Twitter

0:00

Innovative instrument as Bank Guarantee (BG) for road infrastructure sector

To boost liquidity and capacity of bidders, NHAI has accepted Insurance Surety Bond for the monetization program of the upcoming bid of Toll Operate Transfer (TOT) Bundle 14.

This will be the first time this innovative instrument is being utilized as a Bank Guarantee (BG) in the road infrastructure sector for monetization of bids. NHAI has been working closely with Highway Operators Association of India (HOAI), SBI General Insurance and AON India Insurance to implement this initiative.

Insurance Surety Bond has been issued for NHAI monetization bid of TOT bundle 14 @ 0.25% by the insurer without any margin money. This will translate into big saving for Concessionaires, which will further enhance liquidity in the market, thereby fostering an environment conducive to the growth and development of the road sector.

Issuance of Insurance Surety Bond will set a new benchmark for the industry, highlighting the importance of innovative financial solutions in the evolving landscape of road infrastructure development. It will encourage private participation in the highway sector and will be a significant step towards facilitating ‘Ease of Doing Business’.

Since 2022, NHAI has received 1,665 BGs amounting to Rs.15,000 crore. This large volume of BGs offers a huge scope for Insurance Companies and wider adoption of surety bonds will boost availability of capital for road projects. NHAI has urged insurance companies and contractors to use Insurance Surety Bonds as an additional mode of submitting Bid Security and /or Performance Security. So far, over 40 Surety Bonds have been issued for various NHAI contracts.

Insurance Surety Bonds are instruments where insurance companies act as ‘Surety’ and provides the financial guarantee that the contractor will fulfil its obligation as per the agreed terms. Ministry of Finance has made e-BG and Insurance Surety Bonds at par with Bank Guarantees for all Government procurements.

Instruments like Insurance Surety Bonds will help to strengthen National Highway Infrastructure development, which has cascading positive impact on Indian economy. Fiinews.com

Tags: MoRTH
ShareTweetShare

Related Posts

PIB
Tenders

Tender: Investors invited to port modernization

by Fiinews
July 10, 2025
0
19

100% FDI permitted in shipping and shipbuilding T.K. Ramachandran, Secretary, Ministry of Ports, Shipping and Waterways, has outlined India’s efforts...

PIB
Tenders

Tender: Govt’s Rs.5,000cr plans for Northeast

by Fiinews
July 9, 2025
0
16

100 barges to be deployed on NW2 & 16 by 2025 The Central Government has drawn up major initiatives of...

NICDC

Tender: Take care of new urban development

July 5, 2025
24
Tamta Infra

Tender: Minister wants innovation in projects

July 6, 2025
13
Indian Railways

Tender: Asangaon–Kasara 4th Line proposed

July 3, 2025
18
PIB

Tender: Upgrade of Paramakudi-Ramanathapuram

July 3, 2025
15
SBI YONO

POPULAR NEWS

  • Cristina Dnv

    Projects: Indian yards set to build green ships, says DNV expert

    0 shares
    Share 0 Tweet 0
  • Market: Indian-origin UGF scales heritage consumer brands globally

    0 shares
    Share 0 Tweet 0
  • Technologies: Royal Diamond sponsors aerspace Industries’ drones in UAE

    0 shares
    Share 0 Tweet 0
  • Investments: Foreign investors see India as long-term destination for fund placings

    0 shares
    Share 0 Tweet 0
  • Markets: Blue Dart maintains positive outlook on India

    0 shares
    Share 0 Tweet 0

Fiinews.com features through news articles on business opportunities in the Indian market for the benefits of foreigners. It is also a platform for international businesses to showcase through elaborate articles on their products & services to the Indian consumers and corporations exploiting industrialisation of the country.

7Clicks Media is a Singapore based Media & PR company offering over 100,000
impressions via our targeted communication strategy.

It is led by editor-in-chief Gurdip Singh who has worked over 45 years reporting on
Asian businesses.

Recent News

  • Tech: ansrsource-ANSR to reshape talent across India
  • Tech: Infogain launches GCC solutions in India
  • Market: Sai Parenterals goes global
  • Export: Rs.20lcr potential for Indian agriculture supplies
  • Project: Nistar delivered to Indian navy

Pages

  • About US
  • ADVERTISE ON FIINEWS.COM
  • CONTACT US
  • EVENTS
  • FII-NEWS.COM PDF ARCHIVE
  • Home
  • News
  • PRIVACY POLICY

Subscribe to Newsletter

  • About
  • Advertise
  • Careers
  • Contact us

© 2024 FIINEWS - Design and developed by 7clicksmedia.

No Result
View All Result
  • Tenders
  • Projects
  • Markets
  • Manufacturing
  • Investment
  • Technology
  • Exports

© 2024 FIINEWS - Design and developed by 7clicksmedia.