+
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. 

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code