National Highways Authority of India (NHAI) has accepted the Insurance Surety Bond for the monetization program of the upcoming bid of Toll Operate Transfer (TOT) Bundle 14.

To boost liquidity and capacity of bidders, NHAI has accepted Insurance Surety Bonds for the monetization program of the upcoming bid of Toll Operate Transfer (TOT) Bundle 14. NHAI is working in collaboration with Highway Operators Association of India (HOAI), SBI General Insurance and Aon India Insurance to implement this initiative. 0.25% Insurance Surety Bond has been issued by the insurer for NHAI Monetization Bid of TOT Bundle 14 without any margin money at the rate of Rs. This will result in huge savings to the concessionaires, thereby increasing liquidity in the market thereby promoting an enabling environment for growth and development of the road sector. The issuance of insurance surety bonds will set a new benchmark for the industry, highlighting the importance of innovative financial solutions in the emerging growth landscape. This will encourage private participation in the highway sector and will be an important step towards facilitating 'ease of doing business'. Instruments such as insurance surety bonds will help strengthen the development of national highway infrastructure, which will have a broader positive impact on the Indian economy.