NHAI explores Surety Bonds over Bank Guarantees for project security

28 Aug 2023 CW Team

The National Highways Authority of India (NHAI) has organised a high-level meeting aimed at discussing various facets to uncover opportunities and eliminate operational constraints to encourage broader acceptance of surety bonds as substitutes for bank guarantees.

According to the Ministry of Road Transport & Highways, the collaborative brainstorming session with stakeholders encompassed diverse perspectives, aiming to explore avenues and remove practical barriers to foster wider adoption of surety bonds in lieu of traditional bank guarantees (BGs).

NHAI has appealed to insurance companies and contractors to consider adopting insurance surety bonds as an additional method for presenting bid security and performance guarantees. These bonds, once issued, are expected to offer cost-efficiency while ensuring substantial security for NHAI projects.

Insurance surety bonds function as financial instruments where insurance firms act as 'Surety,' delivering a financial assurance that contractors will fulfil their obligations as per the mutually agreed terms. The Ministry of Finance, government of India, has equated electronic BGs and Insurance Surety Bonds with conventional BGs for all government procurement processes.

Globally, the surety insurance market commands a size of approximately $29.5 billion, but India's involvement in this market has been limited thus far. Anticipated to become the world’s third-largest construction market, India's Infrastructure Sector alone is projected to necessitate about Rs 2.70 trillion worth of bank guarantees in 2023, with an expected annual growth rate of 6 to 8 per cent.

Infrastructure Urban

07 Oct 2025

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..