New Delhi, March 28 -- The petroleum and natural gas regulator has proposed to add insurance surety bonds to bank guarantees and demand drafts as a financial instrument to ensure the timely completion of city gas distribution (CGD) projects and pipelines for petroleum products.

The bonds would work as a financial guarantee, with the insurance company issuing the bond acting as the guarantor.

"The bid and performance bond shall include insurance surety bond from insurance companies in India/demand draft/pay order/bank guarantee from any scheduled bank of India for the amount as specified in the regulation," the Petroleum and Natural Gas Regulatory Board (PNGRB) said in a draft amendment to norms for authorising entities to lay, build, op...