Force Majeure Relief Secured for Government Procurement Contracts Amid West Asia Supply Chain Disruption

AMCHAM engaged with the Ministry of Finance, Department of Expenditure and Ministry of Electronics and Information Technology (MEITY)  to seek relief for U.S. companies facing supply chain and logistics disruptions arising from the ongoing West Asia geopolitical situation. Following a representation by AMCHAM to Ms. Parama Sen, Additional Secretary, Department of Expenditure, they issued Office Memorandum No. 1/3/2026-PPD on April 29^th, 2026, providing meaningful protection for vendors and contractors with active government procurement obligations. The OM explicitly recognizes the West Asia situation as a “war” trigger under India’s Manual for Procurement of Goods (2024), Consultancy Services (2025), Non-Consultancy Services (2025), and Works (2025). Key reliefs secured include extension of delivery and completion timelines by two to four months without imposition of liquidated damages, denial clauses, or financial penalties; and the option to terminate contracts without financial liability where force majeure conditions persist beyond 90 days. The relief applies to contractual obligations due on or after February 28^th, 2026, where disruption is directly attributable to the West Asia situation.