New Delhi, May 28 -- The government's decision to raise Additional Performance Security (APS) requirements for aggressively bid road projects is a constructive step, but it alone may not sufficiently address the irregularities in the responsible bidding, said CareEdge in a report.

The rating agency firm noted that the removal of the APS cap plugs a key loophole in concession agreements. CareEdge cautioned that tighter APS norms alone may not be sufficient to address intense competition in the sector.

"The increase in Additional Performance Security (APS) for aggressively bid projects is a constructive step towards promoting more responsible bidding. Removing the cap on the APS requirement addresses the existing loophole in concession te...