The finance ministry has asked other minist🐈ries and departments not to issue 'Letter of Comfort' to any hired entity for undertaking projects on their behalf, as part of efforts to improve transparency in fiscal management.
Issuance of 'Lette🧜r of Comfort' by the ministries and department helps a vendor in achieving f🐬inancial closure for a project in a faster manner.
The 🐟authority to issue 'Letter of Comfort' by ministries or department or any entites of the Government of India stands withdrawn with immediate effect, an o🀅ffice memorandum issued on March 31 said.
"Henceforth, no 'Letter of Comfort' will be issued by a✨ny entity within the government," it added.
Infrastructure ministries like railways were authorised to issue 'Letter of Comfort' to contractors engaged in🌜 development of💖 projects.
There were also fears that 🍌'Letter of Comfort' could be misused.
Under the provision of the fiscal responsibility law, thඣe budget requires to provide details of guarantees💛 given by the government.
