Maha State Finance Department Announces Relief Measures for Government Contractors

Maha State Finance Department Announces Relief Measures for Government Contractors

The Maharashtra State Finance Department has issued a new order to provide government contractors with an extension to their pending civic or state projects. The state will offer a 6-month extension for projects (between March 15 and September 15). Consequently, this means that pending civic or state projects in Maharashtra will likely be delayed by an additional six months.  

Govt contractors who are hired by the state and civic organizations for infrastructure projects have faced plenty of challenges over the past few months, particularly with the coronavirus imposed lockdowns across the state. The State Finance Department pointed out that several infrastructure projects have been pending owing to the lockdowns, with aspects like manpower, supply chains, and so on adversely affected.

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“The guidelines issued by the finance department are applicable to all government contractors as well as those hired by local authorities, civic corporations, and public companies. However, individual authorities have the right to implement the guidelines in toto or make changes as required. The underlining motive is to give relief to contractors in these unforeseen circumstances,” a senior bureaucrat said.

The Finance Department also announced relief measures for payment of security deposits as well as the performance deposit. This will provide contractors additional time to pay the security deposit keeping the economic climate in mind. 

These measures are expected to help government contractors get back on their feet during these tough financial times. The Central Government had previously provided an extension of three to six months for pending infrastructure projects. 

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