02-May-2026
Corporate News
 
Force majeure enabled for 'war'-hit contracts: Govt procurers to grant case-by-case extensions, only for firms that hadn’t defaulted by Feb 27
02-May-2026

The finance ministry has authorised invocation of force majeure for government contracts affected by the West Asia conflict, saying the situation should be treated as war, offering relief to companies such as drone manufacturers which have been severely impacted by supply chain disruptions since the launch of the US-Israeli strikes against Iran on February 28. The move shields companies from penalties for missing deadlines by two to four months.

News Source:- https://economictimes.indiatimes.com/news/defence/force-majeure-enabled-for-war-hit-contracts-govt-procurers-to-grant-case-by-case-extensions-only-for-firms-that-hadnt-defaulted-by-feb-27/articleshow/130687714.cms