Road, transport and highways minister Nitin Gadkari on Tuesday said that changes will be made to the surety bond offering to make it more lucrative as no contractor is buying it because of the strict conditions imposed by insurance regulator Irdai.
Last year in December, Gadkari launched the country's first-ever surety bond insurance product, with an aim to reduce the dependence on infra developers of bank guarantees.
"Don't impose such conditions that nobody is able to take benefit of the scheme...It took 3 years to come out with surety bonds and when it has been finally launched, no contractor is buying it," Gadkari said at an event organised by CareEdge Ratings.
The product, from the stable of Bajaj Allianz General Insurance, has been developed in response to a demand identified by the industry and the government.
"Changes will be made to surety bond offering to make it more lucrative," he added.
The Surety Bond Insurance is a risk transfer tool for the principal and shields th
