New Delhi: The National Highways Authority of India (NHAI) has proposed insurance cover for road projects, in a step that could help bring in credible project developers and mitigate construction period risks.
“We are trying that insurance companies should also give a surety,” an official close to the development told ET. “We have proposed to the Insurance Regulatory and Development Authority of India (IRDAI) to come up with an instrument.” This mechanism has been proposed since banks are facing difficulties in furnishing bank guarantees, the official said, requesting not to be named.
