Indian government will impose additional performance security on low bidders for National Highway construction, citing liquidity concerns in the sector.
New Delhi, Mar 1 (PTI) Additional performance security will be levied on exceptionally low bidders for the construction of National Highways only under compelling circumstances, the government has said.
The Ministry of Road, Transport, and Highways (MoRTH) in the circular further said that it had on May 18, 2022 revised the formula for calculation of additional performance security, and a limit of 3 per cent of bid price offered by the selected bidder was fixed.
It noted that liquidity stress in the highways sector is still continuing and there are cases where existing projects have been delayed owing to a liquidity crunch.
In 2022, MoRTH had directed highway builders to furnish an additional security to rein in errant bidders that bid abnormally low.
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