FM’s extension of completion timelines a big relief for construction firms.
Finance Minister Nirmala Sitharaman’s announcement of a relaxation in completion timelines for government contracts comes as a breather for companies grappling with the Covid-19 crisis and the exodus of migrant labourers.
Sitharaman said an extension of up to six months will be provided by all central agencies — the Railways, Ministry of Road Transport and Highways, and Central Public Works Department. The relief has been extended to all construction related activities and goods and services contracts.
It also covers obligations like completion of work, intermediate milestones and extension of concession period in public-private-partnership contracts. To ease companies’ cash flow position, government agencies will partially release bank guarantees.