India gives 4 months more time to local defence contractors for deliveries due to pandemic

File Photo: India’s defence minister Rajnath Singh.

(Editor’s Note: Updated with a copy of order at the end.)

New Delhi: India today extended the time for deliveries from domestic defence contractors by four months in view of the extraordinary nationwide lock down due to the COVID-19 pandemic. Foreign vendors may approach the Indian Ministry of Defence to seek extension of time for deliveries.

The defence ministry extended the delivery period for all existing Capital Acquisition contracts with the Indian vendors by four months due to Supply Chain disruptions arising out of COVID-19 pandemic, an official statement said.

In this regard, the Acquisition Wing of the defence ministry has issued an order, duly approved by Minister of Defence Rajnath Singh.

Force Majeure shall be applicable for a period of four months, that is 25th March 2020 to 24th July 2020,” the order read.

“Duration of this Force Majeure will be excluded while calculating the delay in delivery of contracted equipment/service and imposition of Liquidated Damages charges.”

This measure would bring a big relief to the domestic defence industry, whose production schedules have been adversely affected by the COVID-19 situation.

The defence ministry order, however, adds that the Indian vendor is free to deliver the contracted items well within the extended delivery period.

Further, as per the order, no separate contract specific amendments are required to be made to give effect to this decision.

With respect to the foreign vendors, they can approach the defence ministry, which may consider cases on the basis of the situation prevailing in their respective countries.

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