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The Indian Ministry of Defence (MoD) has extended the existing capital acquisition deliveries period for contracts with domestic manufactures.
This extension by four months is in response to the supply chain challenges faced by Indian vendors due to the coronavirus (Covid-19) pandemic.
India Defence Minister Rajnath Singh has approved the order issued by the acquisition wing of the MoD.
The order reads as: “Force Majeure shall be applicable for a period of four months i.e. 25 March 2020 to 24 July 2020.
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By GlobalData“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 a big relief to the domestic defence industry, whose production schedules have been adversely affected by Covid-19 situation.”
However, the Indian vendors are given the liberty to deliver the contracted items as per the scheduled delivery period.
This notice also dismisses the need for further separate contract specific amendments for the deliveries.
The deliveries to be made by foreign vendors will be evaluated by the MoD based on the current situation in their countries.
Earlier this month, the Indian MoD granted approval for the purchase of 156 BMP-2 ‘Sarath’ infantry combat vehicles (ICVs).
The additional vehicles for the Indian Army are being procured for around Rs11.25bn ($148m).
