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Relief for Contractor Developers of Road Sector in view of Covid-19

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No. COVID-1 9/RoadMap/JS(H)/2020 (183777 \
Government of lndia
Ministry of Road Transport & Highways
(Highways Section)
Transport Bhawan, 1, Partiament Street, New Dethi-j 10001
Dated:
O
.
I December, 2022
To
r.
2.
3.
4.
5.
6.
7.
The Chairman, NHAI, G-5&6, Sector -10, Dwarka, New Dethi-110075
The Managing Director, NHIDCL, PTt Buitding, New Dethi-110001
ADG(Nodat Officer, Roads wing) Ministry of Road Transport & Highways
Principal secretaries/ secretaries of all states/urs pubtic works Department/ Road
construction Department/ Highways Department (deating with Nationat Highways and
other centra[[y sponsored schemes)
At[ Engineers-in-chief and chief Engineers of pubtic works Department/ Road
construction Department/ Highways Department (deating with Nationat Highways and
other centra[[y sponsored schemes)
The D'irector General Border Roads, Seema Sadak Bhawan, Ring Road, New Dethi1 1 0010
Att CE-ROS, ROs and ELOs of the Ministry of Road Transport & Highways
subject: Relief for contractors/Developers of Road sector in view
- reg
of
covlD-19 pandemic
Sir,
I am directed to refer to this Ministry's lette6of even number dated 26.0g.2021,
08.10.2021, 04.01.2027 and 11.04.2022 on the subject mentioned above and to convey the
approva[ of the competent authority in the Ministry of Road rransport & Highways for further
extension of the foltowing retief measures for period of 5 months from o1.ll.zo2z to
31.03.2023 as under:
(i)
Extension of retaxation in Schedule H/G titt 31.03.2023
funds avai[ab[e with the Contractors and Concessionaire.
to improve the tiquidity of
(ii)
Arrangement regarding direct payment to approved Sub-Contractor through Escrow
Account titt 31.03.2023 or the comptetion of the work by the Sub-Contractor, whichever is
earlier.
(iii)
Reduction of Performance Security/ retease of retention money: This Ministry has
already decided to reduce Performance Security from existing 5-10 % to 3% of the value of
the contract for atI existing contracts (excluding the contracts under dispute wherein
arbitration/court proceedings have already been started or are compteted). Att tenders
/contracts issued/ conctuded titt 31.03.2023 shoutd atso have the provision of reduced
performance security. However, in order to ensure quatity of work being executed, the
Ministry wilt advise a[[ project executing agencies to ensure that in case of abnormatty tow
bids (ALBs), additional performance security is rea(ized as per the latest guidelines provided
by Department of Expenditure, Ministry of Finance.
Retention money is a part of the Performance Security titl construction period. Hence,
of retention money may be continued in proportion to the work atready executed and
no reduction of retention money may be made from the Bitts raised by the Contractor tiu
retease
31.03.2023.
For HAM/BOT Contracts, performance Guarantee
may-be released on pro-rata basis, as
provided in the contract, if concessionaire
is not rn uilicr, of the contract.
2'
The above said ret'ief measures are valid titt the
mentioned dates untess withdrawn by
"
th_e date
rrpt"r""ting
agencies are requested to
,.indi;"t"i.
imptement the retief measures accordingty.
-
the Ministry earlier than
Yours faithfutty,
ushant Sudan)
Deputy Secretary to the Gov ernment of lndia
Tetephone No. 01 1 -23724515
Copy to:
1. Sr. PPS to Secretary (RT&H)
2. AS&FA, MoRTH
3. AS(H&LA)
4. Att Joint Secretaries in the MoRTH
s.
Att ADGS/CES in the MoRTH
6
5r.
Director (Nrc), MoRTH for uptoading on the website
of the Ministry
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