New Delhi, May 13: Finance Minister Nirmala Sitharaman on Wednesday announced a six month extension of contracts for contractors by all central agencies and departments including railways, the Central Public Works Department, and Ministry of Road Transport & Highways.

The extension would not come with any cost for the contractors, she told the media at a briefing here.

The extension covers construction works and goods and services contracts. It also covers obligations like completion of work, intermediate milestones and extension of concession period in public private partnership contracts.

Further, government agencies will partially release bank guarantees, to the extent contracts are partially completed, to ease cash flows, Sitharaman said.

The decision is part of the Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi on Tuesday evening. (IANS)