By – Mr. Prabhakar Kumar,Head – Government Consulting, REPL (Rudrabhishek Enterprises Ltd.)
The Ministry of Road Transport and Highways’ decision to introduce Additional Performance Security (APS) is a positive step towards ensuring greater discipline in road infrastructure projects. It’s a clear signal that only serious and financially sound players should participate in national-level tenders. While this move may temporarily increase the financial burden on smaller and mid-sized contractors—especially those with limited bank guarantee capacity. In the long term, it will filter in only credible participants and reduce the risk of delays or poor execution.
APS enhances transparency in the bidding process, promotes responsible pricing, and discourages speculative bids. Over time, this shift is likely to improve the overall quality, timeliness, and sustainability of road infrastructure across the country. In lieu of that the government should assure the timely payment to the contractor against the work done, if they do the quality and timely work. It also sends a strong message that cost-cutting at the expense of quality will no longer be rewarded. This move aligns with India’s Vision 2047, where quality, speed, and sustainability remain central goals.
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