Disruption in the supply of goods from China or any other country due to Novel Coronavirus will be considered as a case of natural calamity under the Force Majeure (FM) clause.

In a statement, Ministry of Finance has clarified that the clause may be invoked as per the Manual for procurement of Goods, 2017, in light of the COVID-19 outbreak.

FM clause saves stakeholders from contractual liability in the event of circumstances beyond human control. Firms entering into supply agreements have to notify such events as soon as it occurs.