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Big relief to defence industry: Four-month extension of delivery period

Ministry of Defence issued orders giving a four-month extension of delivery period to all capital acquisition contracts due to COVID pandemic.

defence

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  13 Jun 2020 7:44 AM GMT

NEW DELHI: In a big relief to domestic arms and ammunition industry, the Ministry of Defence on Friday issued orders giving a four-month extension of delivery period to all capital acquisition contracts due to COVID pandemic.

The ministry said that they have 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 preventive measures.

"An order to this effect issued today by the acquisition wing of the Ministry, duly approved by Defence Minister Rajnath Singh, states that the "Force Majeure shall be applicable for a period of four months that 25th March 2020 to 24th July 2020".

It adds that the "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 COVID-19 situation.

The 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. (IANS)

Also watch: Morning Bulletin | 12th June 2020

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