Indian Economy News

Claims of more than 10,000 MSMEs have been accepted under the Vivad se Vishwas-I scheme since launch

Various Ministries/Departments of the Government of India have accepted more than 10,000 MSMEs' claims under the Vivad se Vishwas-I scheme intended to provide relief to MSMEs during the COVID-19 pandemic period, which is a significant relief for micro, small, and medium enterprises (MSMEs). This resulted in the grant of more than Rs. 256 crore (US$ 30.7 million) to MSMEs and an increase in the flow of bank credit, through freeing up of guarantees.

The Ministry of Petroleum and Natural Gas (MoPNG) has approved the largest relief, amounting to Rs. 116.47 crore (US$ 13.9 million), accepting over 2,807 claims. This covers the claims settled and the amount paid by the organisations under the MoPNG's administrative control. Furthermore, this was followed by the Ministry of Railways, who accepted 2,090 claims and paid an amount of Rs. 79.16 crore (US$ 9.5 million).

The Union Finance Minister announced the Vivad se Vishwas I-Relief for MSMEs scheme in the Budget Speech 2023-24. On April 17, 2023, the Ministry of Finance announced the commencement of the programme via the Government e-Marketplace (GeM) portal.

The scheme and process for filing claims were outlined in instructions released by the Department of Expenditure. Later, the scheme's scope was extended to cover earning contracts and the procurement of works. In accordance with the scheme, relief was offered in the form of a return of 95% of the deducted bid security, performance security, and liquidated damages.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.