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.