The government is considering to introduce insurance bonds as an alternative to bank guarantees. Bank guarantees are usually asked for at the time of granting loans and are generally required in the form of mortgaged assets.
Mumbai . The government is considering introducing insurance bonds as an alternative to bank guarantees. Finance Secretary TV Somanathan made this announcement during a meeting of Finance Minister Nirmala Sitharaman and industry leaders. Sitharaman is on a two-day visit to Mumbai.
According to an official statement, “the government is considering introducing insurance bonds as an alternative to bank guarantees.” An insurance bond is also like a guarantee but it does not require any kind of living.
Also work on tax related issues of startups
In a meeting with industry leaders, Sitharaman said that the government is committed to certainty and confidence in the matter of policies. He said that the regulators also have an important role to play in ensuring this.
According to the statement, he said that the government is working with the regulators on this important issue. On this occasion, Revenue Secretary Tarun Bajaj said that the department is working on tax related issues of startups. He sought suggestions from the industries in this regard.
Sitharaman also assured the industry of resolving the complex regulatory compliance issues affecting competition, including high power tariffs. The Finance Minister is scheduled to hold a meeting with the heads of public sector banks on Wednesday.
National Monetization Pipeline (NMP) Plan
Finance Minister Nirmala Sitharaman unveiled the National Monetization Pipeline (NMP) plan on Monday. He said that the share of underutilized assets will be sold. This mission will cover many sectors. This includes roads, railways, airports to power transmission lines and gas pipelines. The Finance Minister said that the government will not sell any of its assets. Will use it better. Their ownership will remain with the government.
Keep in mind that Finance Minister Nirmala Sitharaman has already said that the government is planning to sell such properties to meet the fiscal deficit. The government, which has been hit by Corona, has very few options to raise revenue. Therefore, the sale of these properties is considered fixed.
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