Summary: —- ### Key Business Point **Insurance Surety Bonds (ISBs) are now officially recognized as a direct alternative to Bank Guarantees (BGs) for Bid Security and Performance Security across all power procurement frameworks in India.** ### Matters for Businesses – **Reduced Liquidity Lock-up:** Unlike bank guarantees that block working capital, ISBs are issued by insurance […]
Introduction of Insurance Surety Bonds (ISBS) as an Alternative to Bank Guarantee/Bid Security across all Power Procurement Frameworks – EQ
Summary: — The Ministry of Power has already integrated ISB provisions into **Standard Bidding Guidelines** for: – Renewable energy projects (Solar, Wind, Hybrid, FDRE) – Pumped Storage Projects – Transmission projects – Battery Energy Storage Systems (BESS) The memorandum **advises all States/UTs and procuring utilities** to amend their bidding documents accordingly for **long-term, medium-term, and […]