Excelsior Correspondent
JAMMU, Feb 10: Following extension in the Office Memorandum (O.M) order by the Government of India regarding reduction in `Performance Security’, the J&K Finance Department has also extended validity of its circular on the same till March 31, 2023.
According to the O.M No. F.9/4/2020-PPD, dated 12-11-2020, issued by the Department of Expenditure, Ministry of Finance, Government of India, Performance Security in respect of the procurement by the Government bodies, was reduced from 5-10 percent to 3 percent of the value of the contract because of the exceptional circumstances created due to pandemic and acute financial crunch faced by the contractors. Besides, provision of Bid Security was also excluded in the Bid Documents as per the O.M order.
These instructions were applicable to all tenders up to December 31, 2021 and the J&K Finance Department, vide circular No.A/Misc (2018)-III-895/J, dated 22-12-2020, had applied the same mutatis mutandis to the Union Territory.
As the Government of India, Ministry of Finance, Department of Expenditure, Procurement Policy Division, vide O M No.F/4/2020-PPD, dated 20-12-2021, has extended validity of the OM order dated 12-11-2020 till March 31, 2023, the J&K Government today also ordered validity extension of its circular No.A/Misc(2018)-III-895/J, dated 22-12-2020, regarding reduction in the ‘Performance Security’ in the Union Territory till March 31-2023.
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