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.
