Coimbatore: A representation has been submitted to the Union finance minister seeking additional directions to ensure uniform relief to suppliers after the Centre invoked the Force Majeure clause due to the West Asian war situation.
Background of the Representation
In a representation, the Railway Suppliers Equipment Association has welcomed the office memorandum dated April 29, 2026, which allows re-fixation of delivery schedules without penalty for up to four months for purchase orders due for completion on or after Feb 28, 2026. The association said that before the memorandum was issued, several eligible railway purchase orders had been either cancelled with recovery of general damages or had delivery periods extended with imposition of penalties in the form of liquidated damages.
Key Demands for Relief
Seeking further guidelines to operationalise the relief, the letter requested that cancelled purchase orders be reinstated with revised delivery periods on the supplier's request. It also sought refund of general damages already recovered in cases where suppliers do not seek reinstatement. For cases where delivery periods were extended with penalty, the representation asked that timelines be re-fixed without penalty for up to four months and that penalties and Liquidated Damages already recovered be refunded.
Impact on Micro and Small Industries
The letter said early issuance of these directives would provide tangible relief to micro and small industries affected by the disruption linked to the West Asian war. The association emphasized that uniform application of the Force Majeure clause across all suppliers is essential to ensure fairness and prevent arbitrary decisions by different railway zones.
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