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

By: |
Updated: May 13, 2020 5:30 PM

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.The relief for contractors covers construction and goods and services contracts.

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.

This story is being updated

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1No investments from Chinese companies in India’s highway projects in recent times: Nitin Gadkari
2This festive season, visit Haridwar, Mata Vaishno Devi, Rishikesh & more with IRCTC Uttar Darshan Package; details
3Indian Railways flags off 600th Kisan Rail service from Maharashtra to Bihar; details