Insurance Surety Bonds for NHAI Cross Rs 10bn Milestone

12 Sep 2025 CW Team

Achieving a significant milestone, Insurance Surety Bonds (ISB) issued by insurance companies for National Highways Authority of India (NHAI) contracts have crossed the Rs 10 billion mark. As of July 2025, 12 insurance companies have issued approximately 1,600 ISBs as ‘Bid Security’ and 207 ISBs as ‘Performance Security’, with a combined value of around Rs 10.37 billion for NHAI projects. NHAI has been actively promoting the use of ISBs as an additional option for submitting Bid Security and/or Performance Security deposits.

To further encourage the adoption of Insurance Surety Bonds and Electronic Bank Guarantees (eBG), a workshop was organised by NHAI in New Delhi. The session was chaired by Shri N.R.V.V.M.K Rajendra Kumar, Member (Finance), NHAI, and included Shri Nilesh Sathe, Former Member of the Insurance Regulatory and Development Authority (IRDA), senior NHAI officials, industry experts, and representatives from various insurance and finance companies.

Insurance Surety Bonds are instruments in which insurance companies act as ‘Surety’ and provide a financial guarantee that contractors will fulfil their obligations according to the agreed terms. The Ministry of Finance, Government of India, has equated eBGs and ISBs with traditional Bank Guarantees (BGs) for all government procurements. ISBs offer a cost-effective alternative while providing adequate security for NHAI’s infrastructure projects.

With India poised to become the world’s third-largest construction market, the demand for Bank Guarantees in the infrastructure sector is expected to grow by 6 to 8 per cent year-on-year. Surety Bonds provide a viable substitute for traditional Bank Guarantees. Their cost-effectiveness and security benefits are set to offer substantial relief to the infrastructure sector and support its continued expansion.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..