{"id":384265,"date":"2020-11-16T09:17:49","date_gmt":"2020-11-16T03:47:49","guid":{"rendered":"https:\/\/infralive.com\/web\/?p=384265"},"modified":"2020-11-16T11:56:42","modified_gmt":"2020-11-16T06:26:42","slug":"stimulus-to-reduce-cost-of-bank-guarantees-for-infrastructure-contractors","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/stimulus-to-reduce-cost-of-bank-guarantees-for-infrastructure-contractors\/","title":{"rendered":"Stimulus to reduce cost of bank guarantees for infrastructure contractors"},"content":{"rendered":"<p>NEW DELHI: Capping of performance security on infrastructure and construction contracts to 3% and bid security declaration in place of earnest money deposit as part of the third stimulus announced on Thursday will reduce locking up of capital and cost of bank guarantees for the sector, industry experts said.<\/p>\n<p>The announcements will help ease the liquidity issue for contractors, reducing their working capital requirements.<\/p>\n<p>The government also announced a Rs 1.10 lakh crore platform for infra debt financing with a Rs 6,000 crore equity infusion in the National Investment and Infrastructure Fund to provide a boost to infrastructure financing.<\/p>\n<p>\u201cNewly announced measures such as replacing earnest money deposit with bid security declaration will provide relief to contractors since it shall lower locked-up capital and reduce cost of bank guarantee,\u201d Tata Projects managing director Vinayak Deshpande said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NEW DELHI: Capping of performance security on infrastructure and construction contracts to 3% and bid security declaration in place of earnest money deposit as part of the third stimulus announced on Thursday will reduce locking up of capital and cost of bank guarantees for the sector, industry experts said. The announcements will help ease the liquidity issue for contractors, reducing their working capital requirements. The government also announced a Rs 1.10 lakh crore platform for infra debt financing with a Rs 6,000 crore equity infusion in the National Investment and Infrastructure Fund to provide a boost to infrastructure financing. \u201cNewly [&hellip;]<\/p>\n","protected":false},"author":40,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,193,136],"tags":[],"class_list":["post-384265","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-roads-the-economic-times","category-the-economic-times"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/384265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=384265"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/384265\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=384265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=384265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=384265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}