FM announces relief for contractors

Finance Minister Nirmala Sitharaman on Wednesday announced up to six months extension for completion of obligations under highways, railways and other contracts. The move will provide relief to contractors impacted by the COVID-19 crisis. "The extension of up to six months without cost to contractor is to be provided by all central agencies like Railways, Ministry of Road Transport & Highways and Central Public Works Department," Sitharaman said.

She said this covers construction works and goods and services contracts besides obligations like completion of work, immediate milestones etc and extension of concession period in contracts on public private partnership. To ease cash flows, government agencies will partially release bank guarantees, to the extent contracts are partially completed, she said.

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