The finance ministry has announced that ministries and departments will no longer be able to provide a 'Letter of Comfort' to any organization, in an effort to increase openness in fiscal concerns and budgeting.
The issuance of a 'Letter of Comfort' by the ministries and departments aids a vendor in completing a project's financial closing more quickly. The ability of ministries, departments, or other entities of the Government of India to issue 'Letters of Comfort' has been revoked with immediate effect, according to an office memorandum released on March 31. "No 'Letter of Comfort' will be issued by any government agency from now on," it stated.
Infrastructure ministries, such as railroads, were given the authority to issue 'Letters of Comfort' to contractors working on projects. There were also concerns that the term 'Letter of Comfort' would be misappropriated. The budget is required to contain specifics of government guarantees under the provisions of the fiscal responsibility law.
Centre to borrow Rs.8.45 lakh crore from market in April-Sept
FDI into India increased by 65 pc during Modi regime: Nirmala Sitharaman
