No. PR – 173
December 16, 2021
PHD Chamber urge the Government for the extension of the PBG and EDM for one more year till 31st December 2022
While appreciating the swift action taken by the Ministry of Finance during the pandemic to reduce the percentage of performance security from 5-10 per cent to 3 per cent and relaxations of Earnest Money Deposit (EDM) till 31st December 2021, Mr. Pradeep Multani, President, PHD Chamber of Commerce and Industry, has urge the Government for the extension of the PBG and EDM for one more year till 31st December 2022.
The initiative has significantly supported the trade and industry in the difficult times of the Covid-19 as there was an acute financial crunch among many commercial entities, which in turn had affected the timely execution of the contracts and the bidding capacity of the business entities, said Mr. Pradeep Multani, President, PHD Chamber of Commerce and Industry.
The economy is recovering from the drastic impact of pandemic covid-19 in the recent months from the lows of April and May 2021. However, the looming effect of the new variant of the virus impacts many business entities as they are still facing the same challenges of liquidity along with the surge in commodity prices and increased costs of raw materials, said the President.
The mutating viruses are constraining demand in the domestic and international markets to reach its peak and hindering trade. Therefore, a significant handholding is required to support the trade and industry for attaining high growth trajectory in the coming times, said Mr Pradeep Multani.
The President urged the Government to extend the reduced percentage of performance security at 3 per cent from the previous 5-10 per cent and continue to exempt bid security/ EMD and ask bidders to sign “Bid Security Declaration” for the procurement of tenders for one more year till 31st December 2022.
He also suggested replacing the PBG provision in tender bidding with insurance scheme that would provide a guarantee of compensation for any loss, damage in return for payment of a specified premium. This would significantly support the business entities and contractors to execute their contracts and help them to address financial challenges caused by the pandemic covid-19.
PHD Chamber of Commerce and Industry