Benefit of Reduced Performance Security/ Security Deposit of 3%

Validity of Finance Department Memo No. 201-F(Y) dated 18.01.2021 for allowing the benefit of reduction of Performance Security/ Security Deposit to 3% shall be extended to 31.03.2023.

GOVERNMENT OF WEST BENGAL
Finance Department
Audit Branch, Group T
(File No:- 329975)

No: 796-F(Y) Date: 25.02.2022

Memorandum

Sub:- Extending the benefit of reduced Performance Security/ Security Deposit of 3% as per FD Memo No. 201-F(Y) dated 18.01.2021 upto 31.03.2023

Government of India, Ministry of Finance, vide OM No. F.9/4/2020-PPD dated 12.11.2020, reduced the rate of Performance Security for all existing contracts as well for all tenders/ contracts issued/ concluded till 31.12.2021 from 5-10% to 3% of the value of the contract.

State Government accordingly issued order vide Finance Department Memo No. 201-F(Y) dated 18.01.2021 to extend the benefit of reduced Performance Security/ Security Deposit @ 3% of the value of the contract to all existing contracts as well for all tenders/ contracts issued/ concluded till 31.12.2021. Contracts under disputes where in arbitration or court proceedings had been started or were being contemplated, were kept out of the ambit of this benefit of reduced Performance Security.

Government of India, Ministry of Finance, vide OM No. F.9/4/2020-PPD dated 30.12.2021, has decided to extend the validity of its earlier OM dated 12.11.2020 regarding reduction of Performance Security, till 31.03.2023.

In view of the above, it is decided that, the validity of Finance Department Memo No. 201-F(Y) dated 18.01.2021 for allowing the benefit of reduction of Performance Security/ Security Deposit to 3% shall be extended to 31.03.2023. Thus, Performance Security/ Security Deposit for all tenders/ contracts, issued/ concluded till 31.03.2023, will be 3% of the value of the contract.

All other provisions of Finance Department Memo No. 201-F(Y) dated 18.01.2021 will remain unaltered.

However, for cases, where more than 3% Performance Security/ Security Deposit have already been received during the interim period from 01.01.2022 to the date of issuance of this order, excess amount so received may be refunded to the bidder/s.

This order will take immediate effect.

Sd/- Manoj Pant, IAS
Principal Secretary to the
Government of West Bengal

No. 796-F dated 25.02.2022, Source

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