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 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 today.

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 28^th June, 2021 to give relief to the economy inter-alia ₹ 1.1 lakh crore loan guarantee scheme for COVID-19 affected sectors and additional ₹ 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 infrastructure sector.

The performance security requirement in Central Government contracts has been reduced from 10% to 3% for all tenders/contracts issued concluded till 31.12.2021 and requirement of bid security has been waived till the end of 2021, the Minister stated.

Loan guarantee scheme improves infrastructure liquidity; CAPEX frontloading and reduced performance security expedite project delivery. Government measures for infrastructure relief include a loan guarantee framework and expanded emergency credit guarantees to ease liquidity, directives to frontload capital expenditure on infrastructure projects to accelerate implementation, and temporary procurement relaxations: reduction of performance security requirements for central government tenders and waiver of bid security to lessen upfront financial burdens on contractors.