Deadline relief for contractors as Centre tags West Asia ‘war’
The Department of Expenditure has issued an Office Memorandum formally classifying the ongoing West Asia situation as a “war” event under the Force Majeure Clause. The move enables relief for contractors executing central government projects. The directive applies to contracts governed by the Manuals for Procurement of Goods, Consultancy Services, Non-Consultancy Services, and Works.
For power sector contractors and independent power producers working on centrally procured projects, completion deadlines falling on or after February 28, 2026, can be extended by two to four months without cost or penalty. The procuring entity will determine the exact extension period on a case-by-case basis after due examination.
Force Majeure can be invoked where disruptions linked to West Asia, including equipment supply delays, shipping constraints, or shortages of input materials, have directly or indirectly affected contractual performance. Eligibility is limited to contractors who were not in default of their contractual obligations as of February 27, 2026.
The memorandum sets a strict procedural requirement. Notice of Force Majeure has to be filed within 14 days of the disruption. Claims cannot be submitted retrospectively. Contractors who have already faced delays but have not issued notice risk losing eligibility.
The directive is limited to central government contracts. It does not extend to state-level procurement, including contracts awarded by distribution companies (DISCOMs) or projects under state tenders. Contractors under such arrangements need to rely on the Force Majeure provisions specified in their respective contracts.
Obligations that were suspended during the relief period will resume once the extension ends. The memorandum has been circulated to the Secretaries of all central ministries and departments.
The featured photograph is for representation only.
