Thiruvananthapuram, March 16. Kerala government has issued orders extending relaxations in performance guarantee for a further period up to 31-03-2023,. This follows an extension of relaxations by Government of India, till March 31, 2023. The Kerala government order will have retrospective effect from March 7, 2022.
Performance guarantee, the amount collected by the government at the time of executing contract agreement was 5 percent of the contract value earlier. Considering the economic slowdown in the country subsequent to Covid pandemic, the Government of India had issued orders on November 11, 2020 reducing the performance guarantee from the then existing 5-10 percent to 3 percent of the value of contract.
Now the Government of India has issued orders extending the relaxations till March 31, 2023. Subsequent to that the state government was requested by Kerala Government Contractors’ Association (KGCA) and others to extend relaxations in Kerala also, and the government granted the request.
