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MoD extends capital acquisition deliveries of domestic manufactures by four months

Friday, 12 Jun 2020
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The Ministry of Defence (MoD) has extended 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. 
An order to this effect has been issued by the acquisition wing of the Ministry and approved by Defence Minister Rajnath Singh. Force majeure will be applicable for a period of four months i.e. 25 March 2020 to 24 July 2020. 
The duration of force majeure will be excluded while calculating the delay in delivery of contracted equipment/service and imposition of liquidated damages charges. 
The MoD 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.
Also, with respect to foreign vendors they can approach the MoD which may consider cases on the basis of the situation prevailing in their respective countries.


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