The surety insurance market is skewed towards lower quantum bid bonds

24 Jul 2024 CW Team

To provide an alternative to traditional bank guarantees and help contractors participate more effectively in infrastructure, Tata AIG General Insurance introduced surety insurance bonds to support the Government's infrastructure development initiatives. The Government has allocated 3.3 per cent of the GDP for FY2024 for infrastructure, creating significant potential for insurance companies offering surety bonds, which will enable contractors to unlock capital, enhance their bidding capacity and overcome liquidity and capital constraints. Deepak Kumar, Senior Executive Vice President and Head, Reinsurance, Credit and Aviation Insurance, TATA AIG General Insurance, in an email interaction informs R SRINIVASAN about what makes security bonds more ideal compared to traditional bank guarantees and shares his views of the bond market in 2024 and going ahead. Excerpts:

Security bonds are designed to provide an alternative to traditional bank guarantees, helping contractors participate more effectively in the infrastructure sector. What makes them preferable?
The fact that surety bonds will be offered without the requirement of a collateral or margin money makes them an economical option for contractors vis-à-vis bank guarantees. Although bank guarantees look cheap to the naked eye, there is a hidden cost that comes with the requirement of collateral or margin money.

To read the full story, CLICK HERE

Infrastructure Urban

28 Oct 2025

GST Bachat Utsav Showcases Nationwide Relief and Growth Momentum

Union Ministers Nirmala Sitharaman, Piyush Goyal, and Ashwini Vaishnaw jointly addressed a press conference in New Delhi on the GST Bachat Utsav, underscoring the far-reaching benefits of the Next-Generation GST reforms implemented ahead of Diwali.Finance Minister Nirmala Sitharaman announced that the revised GST rates—effective from the first day of Navratri—have simplified compliance by reducing slabs from four to two and ensuring greater benefits to consumers. The Finance Ministry is closely tracking 54 essential items to confirm that the lower tax rates are being passed on fully to end..

Indian Railways Operates 12,000 Special Trains for Festive Rush

Union Minister for Railways, Information & Broadcasting, and Electronics & Information Technology, Ashwini Vaishnaw, reviewed passenger movement at the Railway Board War Room and appreciated staff for their round-the-clock efforts during the festive season. He extended Diwali greetings to railway personnel across the country.To meet the surge in travel demand during Puja, Diwali, and Chhath, Indian Railways has deployed 12,011 special trains—up from 7,724 last year—ensuring smooth and comfortable travel for passengers nationwide. Between 1 and 19 October 2025, 3,960 special..

TRAI Evaluates Mobile Network Quality Across Assam Districts

The Telecom Regulatory Authority of India (TRAI) has released its Independent Drive Test (IDT) report for the Assam Licensed Service Area, evaluating network performance across Silchar city and Hailakandi and Karimganj districts. Conducted between 18 and 22 August 2025, the tests covered 284 km of city routes, 10 hotspot locations, and 2.4 km of walk tests.The assessment, supervised by the TRAI Regional Office, Kolkata, examined real-world service quality across 2G, 3G, 4G, and 5G technologies in both urban and rural zones. Key parameters included call setup success rate, drop call rate, laten..