Finance Minister Nirmala Sitharaman on Thursday saying support for construction and infrastructure, she said earnest Deposit (EMD) and performance security requirements are relaxed for GOVT. tenders.Performance security on contracts are reduced to 3 % rather than 5 to 10 %. This might be extended to in progress contracts that are freed from disputes.

It would even be extended to public sector enterprises, she said, adding states will be inspired to adopt the same. Earnest money deposit (EMD) won't be needed for tenders and can get replaced by bid security declaration.

These relaxations are given until December 31, 2021, she said, adding the move would provide relief to contractors by reducing locking up of capital and cost of bank guarantees.

The FM additionally declared an Rs 18,000 crore additonal outlay for the urban housing scheme to help complete real estate projects that may produce jobs and boost the economy. She aforesaid the Rs 18,000 crore would be provided over and better than the Budget Estimates for 2020-21 for the Prime Minister Awas Yojana (Urban) through further allocation and extra-budgetary resources. This is over and higher than Rs 8,000 crore already provided this year. She aforesaid the move would facilitate begin work on 12 lakh houses still as complete 18 lakh houses. This might produce 78 lakh new jobs still as demand for steel and cement.