Govt extends delivery period of all capital acquisition contracts in view of COVID-19

The Defence Ministry on Friday extended by four months the delivery period for all military equipment and hardware under capital acquisition contracts with Indian vendors in view of the coronavirus pandemic, officials said.

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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, they said.

"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.

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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.

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