Defence Ministry extends delivery period for existing capital acquisition from Indian vendors

Our Bureau New Delhi | Updated on June 12, 2020 Published on June 12, 2020

The force majeure shall be applicable from March 25 to July 24

The Ministry of Defence (MoD) has extended the delivery period for all existing capital acquisition contracts with Indian vendors by four months due to supply chain disruptions arising out of the nationwide lockdown to prevent the spread of the coronavirus.

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

The MoD order adds that the vendor is free to deliver the contracted items well within the extended delivery period.

An order to this effect was issued by the acquisition wing of the Ministry, duly approved by the Defence Minister Rajnath Singh, states that the “Force majeure shall be applicable for a period of four months — March 25 to July 24,” a Ministry of Defence statement said. “Duration of this force majeure will be excluded while calculating the delay in delivery of contracted equipment/service and imposition of Liquidated Damages charges,” it said.

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 MoD, which may consider cases on the basis of the situation prevailing in their respective countries, it added.

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Published on June 12, 2020
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