Insurance Surety Bonds for NHAI Cross Rs 10 Billion
ECONOMY & POLICY

Insurance Surety Bonds for NHAI Cross Rs 10 Billion

Insurance Surety Bonds (ISBs) issued by insurance companies for National Highways Authority of India (NHAI) contracts have surpassed the Rs 10 billion mark. As of July 2025, twelve insurers have issued around 1,600 ISBs as ‘Bid Security’ and 207 as ‘Performance Security’, valued at approximately Rs 10.37 billion. NHAI has actively promoted ISBs as an alternative mode of submitting Bid Security or Performance Security deposits.
To encourage broader adoption of Insurance Surety Bonds and Electronic Bank Guarantees (eBG), NHAI organised a workshop in New Delhi. The session was chaired by Shri N.R.V.V.M.K. Rajendra Kumar, Member (Finance), NHAI, with participation from Shri Nilesh Sathe, former IRDA Member, senior NHAI officials, industry experts, and representatives from insurance and finance companies.
ISBs function as instruments where insurers act as ‘Surety’, providing a financial guarantee that contractors will fulfil obligations under contract terms. The Ministry of Finance has recognised eBGs and ISBs on par with traditional Bank Guarantees for all government procurements. These bonds are cost-effective while providing adequate security for NHAI projects.
With India poised to become the world’s third-largest construction market, the demand for Bank Guarantees in the infrastructure sector is projected to grow 6–8 per cent annually. Insurance Surety Bonds provide a viable, cost-efficient alternative, offering substantial financial relief for the sector. 

Insurance Surety Bonds (ISBs) issued by insurance companies for National Highways Authority of India (NHAI) contracts have surpassed the Rs 10 billion mark. As of July 2025, twelve insurers have issued around 1,600 ISBs as ‘Bid Security’ and 207 as ‘Performance Security’, valued at approximately Rs 10.37 billion. NHAI has actively promoted ISBs as an alternative mode of submitting Bid Security or Performance Security deposits.To encourage broader adoption of Insurance Surety Bonds and Electronic Bank Guarantees (eBG), NHAI organised a workshop in New Delhi. The session was chaired by Shri N.R.V.V.M.K. Rajendra Kumar, Member (Finance), NHAI, with participation from Shri Nilesh Sathe, former IRDA Member, senior NHAI officials, industry experts, and representatives from insurance and finance companies.ISBs function as instruments where insurers act as ‘Surety’, providing a financial guarantee that contractors will fulfil obligations under contract terms. The Ministry of Finance has recognised eBGs and ISBs on par with traditional Bank Guarantees for all government procurements. These bonds are cost-effective while providing adequate security for NHAI projects.With India poised to become the world’s third-largest construction market, the demand for Bank Guarantees in the infrastructure sector is projected to grow 6–8 per cent annually. Insurance Surety Bonds provide a viable, cost-efficient alternative, offering substantial financial relief for the sector. 

Next Story
Infrastructure Urban

Coal Ministry Achieves Milestones under Special Campaign 5.0

The Ministry of Coal and its Public Sector Undertakings (PSUs) have achieved notable milestones under the Special Campaign 5.0, focusing on cleanliness, operational efficiency, and sustainability across the coal sector. During the implementation phase from 2–31 October 2025, over 1,205 sites were cleaned, covering 68,04,087 sq ft, nearing the target of 82,51,511 sq ft. Scrap disposal of 5,813 MT against a target of 8,678 MT generated Rs 228.7 million in revenue. In addition, 1,11,248 physical and 30,331 electronic files were reviewed, with 74,123 weeded out or closed. Key initiatives showc..

Next Story
Infrastructure Energy

Vesting Orders Issued for Three Coal Blocks under Commercial Auctions

The Ministry of Coal’s Nominated Authority has issued vesting orders for three coal blocks under commercial coal block auctions on 23 October 2025. The Coal Mine Development and Production Agreements (CMDPAs) for these mines were earlier signed on 21 August 2025. The three blocks include Rajgamar Dipside (Deavnara), Tangardihi North, and Mahuagarhi. Of these, two are partially explored while one is fully explored, with a combined peak rated capacity of around 1 MTPA and geological reserves of approximately 1,484.41 million tonnes. These mines are expected to generate annual revenue of abou..

Next Story
Infrastructure Urban

TEC, IIT-Hyderabad Partner to Boost 6G and Telecom Standards

The Telecommunication Engineering Centre (TEC), technical arm of the Department of Telecommunications (DoT), has signed a Memorandum of Understanding (MoU) with the Indian Institute of Technology Hyderabad (IIT Hyderabad) for joint research and technical collaboration in advanced telecom technologies and standardisation. The partnership focuses on developing India-specific standards and test frameworks for next-generation networks, including 6G, Artificial Intelligence (AI), and Non-Terrestrial Networks (NTNs). It also aims to enhance India’s participation in international standardisation f..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?