Government launches Vivad se Vishwas scheme

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Government launches Vivad se Vishwas scheme

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.

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