The Government of India has allowed contractors to invoke Force Majeure in view of disruptions arising from the ongoing West Asia situation, explicitly recognising “war” as a valid trigger under procurement rules.
In an Office Memorandum (No. 1/3/2026-PPD) issued on April 29, the Ministry of Finance said the prevailing conditions in West Asia should be treated as a war-like event for contractual purposes, enabling relief to contractors impacted by delays.
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The clarification builds on provisions outlined in the “Manual for Procurement of Goods, 2024”, “Manual for Procurement of Consultancy Services, 2025”, “Manual for Procurement of Non-Consultancy Services, 2025” and “Manual for Procurement of Works, 2025”, which define Force Majeure as extraordinary events beyond human control, including war, strikes, riots and natural calamities.
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Under the revised guidance, contracts with completion deadlines on or after Feb. 28, 2026, that have been affected directly or indirectly by the West Asia disruptions may be granted an extension of at least two months and up to four months, without any penalty or additional cost to contractors.
“Not with standing the punitive provisions contained in the contract for delay or breach of contract, the supplier would not be liable for imposition of any such sanction so long as the delay… is the result of an event covered in the FM clause,” the memorandum said.
The government also reiterated that delays attributable to Force Majeure must be assessed on a case-by-case basis, with procuring entities required to re-fix delivery or completion timelines without imposing liquidated damages or denial clauses.
However, the relief comes with conditions. Invocation of Force Majeure will be considered valid only if contractors were not already in default as of Feb. 27, 2026, and only for disruptions directly linked to the West Asia situation.
Contracts may still be terminated by either party if Force Majeure conditions persist beyond 90 days, without any financial repercussions.
The ministry emphasised that Force Majeure does not permanently excuse non-performance but merely suspends obligations for the duration of the disruption. “All contractual obligations shall revive upon completion of the period,” it added.
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