Government launches Vivad se Vishwas scheme

Tags: Economy/Finance Government Schemes National News

The Department of Expenditure, Ministry of Finance, has launched the scheme, “Vivad se Vishwas I – Relief to MSMEs” for providing relief to Micro, Small and Medium Enterprises (MSMEs) for COVID-19 period.

An overview of the news

• The scheme was announced in the Union Budget 2023-24 by Union Finance Minister Nirmala Sitharaman.

• The relief provided under this scheme is in continuation to the efforts of the government in promoting and sustaining the MSME sector.

• Under the scheme, ministries have been asked to refund performance security, bid security and liquidated damages forfeited/ deducted during the Covid pandemic.

Additional benefits to eligible MSMEs, affected during the COVID-19 period

• 95% of the performance security forfeited shall be refunded.

• 95% of the Bid security shall be refunded.

• 95% of the Liquidated Damages (LD) deducted shall be refunded.

• 95% of the Risk Purchase amount realized shall be refunded.

Eligibility Criterion

• Registered as a Medium, Small or Micro Enterprise as per relevant scheme of Ministry of MSME on the date of claim by supplier/ contractor.

• MSME could be registered for any category of Goods and Services.