Sunday, June 15, 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

Nhidcl
Tenders

Tender: NHAI restricts projects per engineer

by Fiinews
June 14, 2025
0
12

Consultants required to visit site every month To enhance quality and supervision mechanism of the National Highway projects, the National...

Ahmedabad Metro
Tenders

Tender: NPG evaluates Metro, Roads, Logistics Park

by Fiinews
June 14, 2025
0
12

PMGS NMP focuses on multimodal connectivity The 95th meeting of the Network Planning Group (NPG) has evaluated Metro Rail and...

Ministry of Railways

Tender: CCEA approves Rs.6,405cr rail projects

June 13, 2025
12
PIB

Tender: Rs.5,400cr scheme for 30 GWh BESS

June 12, 2025
13
PIB

Tender: 93% of 8,000+ SCM projects completed

June 12, 2025
13
NHAI.

Tender: NHAI releases monetization strategy

June 11, 2025
11
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: Infobell-AMD expand AI collaboration
  • Manufacturing: Grainspan supplies ethanol to OMCs
  • Project: Mont Vert to build Kazakh Hospital
  • Project: CMA CGM in discussions with Shipping entities
  • Project: Minister reviews GHAVP plant

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.