Various steps taken for revival of infrastructure sector on back of COVID-19 pandemic

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The Government is taking various measures to ease out liquidity and steep increase in commodity prices and its impact on infrastructure on the back of the COVID-19 pandemic. This was stated by Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in the Rajya Sabha on July 20, 2021.

The Minister stated that measures have also been announced in Aatma Nirbhar Bharat Package (ANBP) to provide support to sectors including infrastructure to mitigate the impact of COVID-19 pandemic. In the announcement made on June 28, 2021 to give relief to the economy inter-alia Rs 1.1 lakh crore loan guarantee scheme for COVID-19 affected sectors and additional Rs 1.5 lakh crore for Emergency Credit Line Guarantee Scheme have been announced.

The Minister further said that the Government is periodically reviewing the capital expenditure (CAPEX) of Infrastructure projects in the country to strengthen economic growth. Ministries/Departments have been instructed to frontload the CAPEX spending of infra projects in order to provide boost to the infrastructure sector.

The performance security requirement in Central Government contracts has been reduced from 10% to 3% for all tenders/contracts issued concluded till December 31, 2021 and requirement of bid security has been waived till the end of 2021, the Minister stated.

The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1737226

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