New Delhi, May 14 -- The tightening of bidding norms by Ministry of Road Transport & Highways (MoRTH) through requirement of additional performance security (APS) will ease competitive pressure in Central Government Road projects, said credit rating agency ICRA.

Previously, the relaxed bidding norms had intensified competition in Central Government Road projects, with most construction projects being awarded at significant discounts - a median around 25 per cent between January 2024 and March 2025.

However, the policy may exert some strain on the credit profiles of small and mid-sized contractors, particularly those with modest bank guarantee (BG) limits, said the rating agency.

In August 2022, the Ministry had imposed APS for projects...