NHAI secures 164 insurance bonds for road projects
ROADS & HIGHWAYS

NHAI secures 164 insurance bonds for road projects

The National Highways Authority of India, as stated by the ministry of road transport and highways, announced that it had received 164 insurance surety bonds (ISB) so far. These bonds comprised 20 for performance security and 144 for bid securities.

According to a statement issued after a day-long workshop on the implementation of insurance surety bonds (ISB) for NHAI contracts, NHAI stated, "Around 700 insurance surety bonds valued at around Rs 30 billion have been issued by different insurance companies so far."

The workshop aimed to assess the progress made in implementing Insurance Surety Bonds and to promote participation from stakeholders for broader adoption of the instrument.

Representatives from various central government ministries and departments, insurance companies, the Highway Operators Association of India (HOAI), and the National Highways Builders Federation (NHBF) attended the workshop, where NHAI members addressed the audience.

The finance ministry has equated insurance surety bonds with bank guarantees for all government procurements. NHAI has been encouraging insurance companies and contractors to utilize this instrument as an additional means of submitting bid security or performance security.

NHAI stated, "Recognizing the potential of ISB, the panellists advocated for a broader adoption of the financial instrument for awarding NHAI contracts, while discussing various challenges and potential measures for faster adoption of the instrument."

Insurance surety bonds function as a financial instrument, where insurance companies serve as 'Surety' and offer the financial guarantee that the contractor will fulfill its obligations according to the agreed terms. NHAI believes that wider adoption of such instruments will bolster infrastructure development in the country.

The National Highways Authority of India, as stated by the ministry of road transport and highways, announced that it had received 164 insurance surety bonds (ISB) so far. These bonds comprised 20 for performance security and 144 for bid securities. According to a statement issued after a day-long workshop on the implementation of insurance surety bonds (ISB) for NHAI contracts, NHAI stated, Around 700 insurance surety bonds valued at around Rs 30 billion have been issued by different insurance companies so far. The workshop aimed to assess the progress made in implementing Insurance Surety Bonds and to promote participation from stakeholders for broader adoption of the instrument. Representatives from various central government ministries and departments, insurance companies, the Highway Operators Association of India (HOAI), and the National Highways Builders Federation (NHBF) attended the workshop, where NHAI members addressed the audience. The finance ministry has equated insurance surety bonds with bank guarantees for all government procurements. NHAI has been encouraging insurance companies and contractors to utilize this instrument as an additional means of submitting bid security or performance security. NHAI stated, Recognizing the potential of ISB, the panellists advocated for a broader adoption of the financial instrument for awarding NHAI contracts, while discussing various challenges and potential measures for faster adoption of the instrument. Insurance surety bonds function as a financial instrument, where insurance companies serve as 'Surety' and offer the financial guarantee that the contractor will fulfill its obligations according to the agreed terms. NHAI believes that wider adoption of such instruments will bolster infrastructure development in the country.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement