Invocation of bg of contractor by govt. entity

Dear Bipin ji, Thank you for your reply...Though I am well aware of the process of invocation in totality, as such, however still I am a bit antsy about the necessity of such clearances from the concerned State Govt. Finance & Legal depts in the wake of the State Govt being a party to the loan borrowing from an international development agency funding construction that was contracted out to the Contractor in question....

I hope some member expert here who has had similar experience in any PMU / EPMC would elucidate and clarify.

Regards