Govt grants relief to firms hit by West Asia disruptions, extends contract deadlines without penalty

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According to the Finance Ministry’s memorandum, such extensions will be decided on a case-by-case basis after examining the validity of claims under the Force Majeure provisions. File

According to the Finance Ministry’s memorandum, such extensions will be decided on a case-by-case basis after examining the validity of claims under the Force Majeure provisions. File | Photo Credit: The Hindu

The Ministry of Finance has said that contractors and suppliers executing contracts with government entities will be given additional time and will not face penalties if their work has been disrupted due to the ongoing West Asia situation, according to an official memorandum.

In the Office Memorandum issued by the Department of Expenditure, the government clarified that delays caused due to such disruptions will be treated under the “Force Majeure” clause, which allows relief in extraordinary circumstances beyond human control”.

Published - May 01, 2026 09:49 pm IST

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