Can contractors claim additional compensation owing to COVID?

Legal Zone

Like most sectors across industries in India, the real-estate sector also experienced a major setback and was adversely hit by COVID-19. In May 2020, Prime Minister Narendra Modi announced special packages to fight the impact of the pandemic, the details of which were announced by Finance Minister Nirmala Sitharaman.

A major relief for contractors under the Atmanirbhar Bharat initiative was the directive to all central agencies, such as the Railways, Ministry of Road Transport and Highways (MoRTH) and Central Public Works Department (CPWD) to provide an extension of up to six months for completion of contractual obligations, including EPC and concession agreements. Accordingly, the Dep