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Opinion | Force major changes to 'force majeure' clause in infrastructure PPPs

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The novel coronavirus pandemic and the 40-day lockdown presents a great opportunity to induce clarity into the force majeure clause in public private partnerships (PPPs) in infrastructure.

Today, a raft of questions need clear-cut answers: What does force majeure include? What is the compensation to be paid if it is invoked?

What are the lacunae in contracts that need correction so that stakeholder interest is balanced? Before answering, let’s first understand how private developers in typical PPP infrastructure projects are affected currently.

In general, the disruption in construction work and operations of ready infrastructure projects along with mass exodus of migrant labour will prolong the rebound to steady-state by a few more

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