This (SOP) will facilitate well timed conclusion of contracts in procurement instances involving BGs from international banks.
The DAP 2020 permits bidders to submit varied sorts of BGs resembling advance fee financial institution assure (APBG).
- PTI New Delhi
- Last Updated:September 16, 2021, 21:14 IST
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The Defence Ministry on Thursday issued an ordinary working process (SOP) that induces readability within the steps a purchaser has to take to confirm financial institution ensures (BGs) which might be given by worldwide banks throughout an acquisition course of. “This (SOP) will facilitate timely conclusion of contracts in procurement cases involving BGs from foreign banks,” the ministry mentioned in a press release.
The Defence Acquisition Procedure (DAP) 2020 supplies proper to the customer to hunt affirmation of the international financial institution’s BG from an Indian financial institution, the place required, on the bidder’s price. On Thursday, the SOP was issued on the steps to be adopted by the customer for searching for recommendation of SBI, Parliament Street Branch, New Delhi with regard to the requirement of affirmation of such BGs, the ministry talked about. “If required, the confirmation of foreign bank’s BG will be through a counter-guarantee by an Indian public or private scheduled commercial bank at the bidder’s cost,” it added.
The DAP 2020 permits bidders to submit varied sorts of BGs resembling advance fee financial institution assure (APBG) and efficiency cum guarantee financial institution assure (PWBG) for discharge of varied contractual obligations, it mentioned. “These BGs can be from any Indian public or private scheduled commercial bank (as notified by Reserve Bank of India) or first class banks of international repute,” it talked about.
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