E-Paper
Govt extends deadline for defence equipment
Deliveries that are in the offing include more locally-made artillery guns, light combat aircraft in the more advanced ‘final operational clearance’ configuration and smaller boats.
The defence ministry on Friday announced that it had extended the delivery period for all existing capital acquisition contracts with Indian vendors by four months because of supply chain disruptions caused by the coronavirus disease (Covid-19).
An order passed by ministry’s acquisition wing and approved by defence minister Rajnath Singh notes that “force majeure shall be applicable for a period of four months i.e. 25th March 2020 to 24th July 2020,” said a defence ministry statement. A force majeure refers to unexpected circumstances that prevent someone from fulfilling a contract.
The duration of the force majeure will be excluded while calculating the delay in delivery of the contracted equipment/service and imposition of liquidated damages (compensation that may have to be paid for breach of contract), the statement added.
“This measure would bring a big relief to the domestic defence industry whose production schedules have been adversely affected by the Covid-19 situation,” a defence ministry spokesperson said.
Foreign vendors can directly approach the ministry, which may consider cases on the basis of the situation prevailing in their respective countries, he added.
Deliveries that are in the offing include more locally-made artillery guns, light combat aircraft in the more advanced ‘final operational clearance’ configuration and smaller boats.
“The extension of the delivery period due to the Covid-19 pandemic is a positive and expected move. The Indian industry had sought some extra time as supply chains have been disrupted,” an HAL official said.
