India, May 15 -- The decision by the union ministry of road transport and highways (MoRTH) to introduce a new additional performance security (APS) regime last month for all central government road projects (such as national highways) is expected to result in better road quality.

APS is a financial guarantee required to be paid by private contractors for quoting significantly below the estimated base price and acts as a safeguard for the government. This is over and above the standard performance securities, which are forfeited in instances of default. A higher APS ensures that only serious and financially stable contractors participate in bidding, ensuring better quality and timeliness.

On April 30, MoRTH, in a circular, had said that ...