Covid-19: Govt extends delivery period for defence acquisitions by 4 months

The decision has been taken due to supply chain disruptions arising out of measures put in place by the government to contain spread of the pandemic

The Defence Ministry has extended the delivery period for existing capital acquisition contracts with Indian vendors by four months due to supply chain disruptions arising out of COVID-19 preventive measures.

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

"The Ministry of Defence has extended the delivery period for all existing capital acquisition contracts with Indian vendors by four months," a spokesperson in the ministry said. In case of foreign vendors, the official said they can approach the Defence Ministry, which may consider cases on the basis of the situation prevailing in their respective countries.

The ministry issued an order saying the extension of delivery period of equipment and hardware will be applicable for the period between March 25 and July 24.

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

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.

According to the order, no separate contract or specific amendments will be required for implementation of the new provision.