Indian Railways News

Indian Railways News

Relief for contractors! FM Sitharaman announces extension for Indian Railways, road and highways contracts

The announcement was made by FM Nirmala Sitharaman a day after PM Narendra Modi promised a Rs 20 lakh crore economic stimulus package to deal with the fallout of the Coronavirus pandemic

Modi Rs 20 lakh crore package details: In a big relief for contractors, all Central agencies have been asked to provide up to 6 months extension, without any cost to the contractor, for obligations such as completion of work. The announcement was made by FM Nirmala Sitharaman a day after PM Narendra Modi promised a Rs 20 lakh crore economic stimulus package to deal with the fallout of the Coronavirus pandemic. The relief for contractors covers construction and goods and services contracts. This includes Central agencies like Indian Railways, roadways and highways projects, Central Public Works Department etc. The extension of up to 6 months covers obligations by the contractor for completion of work, extension of concession period in Public Private Partnership contracts or any intermediate milestones.

The government agencies have been directed to partially release bank guarantees. This will be done to the extent contracts are partially complete, with an aim to ease the cash flows.

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