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JUNE 12, 2020 | Business EYE | The Indian Eye 41

BUSINESS BRIEFS

indiA’s forex reserves Cross govt extends delivery
period of All CApitAl
hAlf-A-trillion mArk ACquisition ContrACts

he country’s foreign exchange re- he Defence Ministry on Friday extended by
serves crossed the half-a-trillion four months the delivery period for all mili-
Tmark for the first time after it surged Ttary equipment and hardware under capital
by massive $8.22 billion in the week ended acquisition contracts with Indian vendors in view of
June 5, according to the latest data from the coronavirus pandemic, officials said. The deci-
the RBI. The reserves rose to $501.70 sion has been taken due to supply chain disruptions
billion in the reporting week helped by a arising out of measures put in place by the govern-
whopping rise in foreign currency assets ment to contain spread of the pandemic, they said.
(FCA). In the previous week ended May “The Ministry of Defence has extended the delivery
29, the reserves had increased by $3.44 bil- period for all existing capital acquisition contracts
lion to $493.48 billion. with Indian vendors by four months,” a spokesper-
In the week ended June 5, FCA, which son in the ministry said. In case of foreign vendors,
is a major component of the overall re- of India (RBI) data showed. In the the official said they can approach the Defence
serves, rose $8.42 billion to $463.63 billion. reporting week, the special drawing Ministry, which may consider cases on the basis of
Expressed in dollar terms, the foreign cur- rights with the International Mon- the situation prevailing in their respective countries.
rency assets include the effect of appreci- etary Fund (IMF) were up by $10 The ministry issued an order saying the exten-
ation or depreciation of non-US units like million to $1.44 billion. The coun- sion of delivery period of equipment and hardware
the euro, pound and yen held in the for- try’s reserve position with the IMF will be applicable for the period between March 25
eign exchange reserves. The gold reserves also rose $120 million to $4.28 bil- and July 24. According to the order, no separate
declined by $329 million to $32.352 billion lion during the reporting week, the contract or specific amendments will be required
in the reporting week, the Reserve Bank data showed. for implementation of the new provision.

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