Government Launches "Vivad se Vishwas Scheme" for COVID-19 Relief to MSMEs

The Indian government has launched the "Vivad se Vishwas I-Relief to MSMEs" scheme to provide relief to Micro, Small and Medium Enterprises (MSMEs) during the COVID-19 pandemic period. This scheme was announced by Union Finance Minister Ms. Nirmala Sitharaman in the Union Budget 2023-24.

According to an order released by the Ministry of Finance's Department of Expenditure on February 6, 2023, the scheme's general framework has been outlined. On April 11, 2023, the final directive was released, expanding the scope of the relief and lowering the refund cap. The scheme commenced on April 17, 2023, and the deadline for submitting claims is June 30, 2023.

The relief provided under this scheme is aimed at promoting and sustaining the MSME sector, which has been severely impacted by the COVID-19 pandemic. Ministries have been called upon to refund performance security, bid security, and liquidated damages that were lost or reduced due to the pandemic. MSMEs that were unable to execute contracts during the COVID-19 period have also received some relief.

Under this scheme, eligible MSMEs affected during the COVID-19 period are entitled to the following additional benefits:

• 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.

• Debarment of firms due to default in contract execution shall be revoked by issuing an appropriate order by the procuring entity.

A dedicated web page has been created by Government e-Marketplace (GeM) for the implementation of this programme. Only GeM shall be authorised to process eligible claims.

News Conclusion

The "Vivad se Vishwas I-Relief to MSMEs" scheme launched by the Indian government is a welcome initiative to provide much-needed relief to the MSME sector during the COVID-19 period. The scheme offers a range of benefits, including the reimbursement of performance security, bid security, liquidated damages, and risk purchase amounts, to eligible MSMEs. The scheme is expected to provide financial support to MSMEs, helping them sustain and grow their businesses in these challenging times. It is a step towards the government's vision of promoting and sustaining the MSME sector, which plays a vital role in India's economic growth. MSMEs must take advantage of this scheme and submit their eligible claims before the deadline of June 30, 2023, through the Government e-Marketplace (GeM) website.

Important News Tags and Headlines for Readers

Micro, Small and Medium Enterprises (MSMEs)

"Vivad se Vishwas I-Relief to MSMEs" scheme

Benefits for Eligible MSMEs Under the Vivad se Vishwas Scheme

Ministry of Finance Announces Final Directive for Vivad se Vishwas Scheme