New Delhi: Finance Ministry The benefit of low performance protection in government contracts was on Thursday extended till March 2023. As per the rules, the successful bidder who has awarded the government contract has to deposit a performance security of 5-10 per cent of the value of the contract with the government.
To help commercial entities and contractors tide over the liquidity crunch after the first wave of covid global pandemicIn November 2020, the Finance Ministry had reduced this performance security to 3 per cent for all tenders/contracts issued or expired by December 31, 2021.
The Finance Ministry on Thursday said that the Government of India has decided to extend the benefit of low performance protection of 3 per cent for all Central Government tenders/contracts issued/expired till March 31, 2023, till March 31, 2023.
“With this relief, the industry can deploy additional resources in project execution as timely and economical project execution by the industry is critical for high speed development of infrastructure as envisaged through National Infrastructure Pipeline,” the ministry said.
It said that the relief has benefited industries especially in construction, manufacturing and service sectors and they will be able to respond with full force to the demands of the government for efficient execution of projects.
To help commercial entities and contractors tide over the liquidity crunch after the first wave of covid global pandemicIn November 2020, the Finance Ministry had reduced this performance security to 3 per cent for all tenders/contracts issued or expired by December 31, 2021.
The Finance Ministry on Thursday said that the Government of India has decided to extend the benefit of low performance protection of 3 per cent for all Central Government tenders/contracts issued/expired till March 31, 2023, till March 31, 2023.
“With this relief, the industry can deploy additional resources in project execution as timely and economical project execution by the industry is critical for high speed development of infrastructure as envisaged through National Infrastructure Pipeline,” the ministry said.
It said that the relief has benefited industries especially in construction, manufacturing and service sectors and they will be able to respond with full force to the demands of the government for efficient execution of projects.
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