Mr. Nitin Gadkari launches first-ever ‘Surety Bond Insurance’ for infrastructure projects
- IBEF
- December 20, 2022
The nation's first surety bond insurance product was introduced by Mr. Nitin Gadkari, Minister of Roads, Transport, and Highways. This would lessen the reliance of infrastructure projects on bank guarantees.
He further stated, insurance will play a significant role in this expansion as India is well on its way to reaching the goal of Prime Minister Mr. Narendra Modi of having a $5 trillion GDP. Infrastructure projects must be completed more quickly in order to fulfil this vision; highways in particular are essential to the nation's economic and social development. The availability of both liquidity and capacity will undoubtedly increase with this new Surety Bonds instrument; such products stand to benefit the industry. We are certain that increasing our road system will result in greater wealth, more employment opportunities, and better social connectivity.
For infrastructure projects, Surety Bond Insurance will serve as a security measure and will protect both the principal and the contractor. The item will meet the needs of a variety of contractors, many of whom are engaged in business in today's increasingly volatile environment. The Surety Bond Insurance serves as a risk-transfer instrument for the principal, protecting the principal from potential damages in the event that the Contractor breaches the terms of the Contract.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
