Govt to infuse Rs 6,000 cr in infra fund, lowers performance security on project contracts to 3%
New Delhi: The government will infuse equity of Rs 6,000 crore in the debt platform of the National Infrastructure Investment Fund (NIIF). The move will help enable NIIF raise Rs 1.1 lakh crore by the year 2025 for financing infrastructure projects.
This was announced today by Finance Minister Nirmala Sitharaman while coming out with another stimulus package which forms part of Atmanirbhar Bharat 3.0..
She also announced that the performance security on project contracts in construction or infra sector will now be only 3 percent as compared to the existing 5-10 percent. This will be applicable for the dispute-free projects. The move is aimed at bringing more private players to the fray for the development of the country’s infrastructure. Now, EMD will not be mandatory for the bid tenders and to be replaced by Bid Security Declaration. These relaxations will be available to the private players till 31 December 2021.