MoD extends delivery period of all contracts by four months | India News

NEW DELHI: In a major relief for domestic armament companies and suppliers, the defence ministry (MoD) has extended the delivery period of all existing capital acquisition contracts by four months due to supply chain disruptions arising out of the Covid-19 pandemic.
Foreign companies can approach the MoD to consider their cases based on the situation prevailing in their respective countries, officials said on Friday.
The order by the acquisitions wing of MoD, approved by defence minister Rajnath Singh, said, “Force majeure shall be applicable for a period of four months, that is March 25 (when the national lockdown first came into force) to July 24. Duration of this force majeure will be excluded while calculating the delay in delivery of contracted equipment/service and imposition of liquidated damages charges.”
Individual domestic vendors do not have to approach the MoD to seek time and contract amendments since the order is across the board. “But the vendors are free to deliver the contracted items within the extended delivery period,” said an official.



[Source :Times of India]

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