The government has accepted more than 10,000 claims of MSMEs involving refunds worth Rs 256 crore under a dispute resolution scheme Vivad se Vishwas-I. Under the scheme, MSMEs could claim a refund of 95 per cent of performance or bid security and liquidated damages forfeited by government departments and public sector entities during the COVID-19 period.
The scheme, announced in 2023-24 Budget, opened on April 17 and the last date for submission of claims for relief on the GeM portal was July 31.
"In a major relief to the Micro, Small and Medium Enterprises (MSMEs), various Ministries/Departments of the Government of India have accepted more than 10,000 claims of MSMEs under Vivad se Vishwas -I scheme aimed at providing relief to MSMEs for the COVID-19 Pandemic period. This has led to grant of more than Rs 256 crore to MSMEs and increased flow of bank credit through freeing up of guarantees," a finance ministry statement said.
The highest relief of Rs 116.47 crore has been granted by the Ministry of Petroleum and Natural Gas. This includes claims settled and the amount paid by the agencies under the administrative control of the MoPNG.
The settlement in the case of agencies under the Railways and Defence ministries would be a total of Rs 79.16 crore and 23.45 crore, respectively. The ministries of steel and Power would settle MSME refund claims worth Rs 14.48 and 6.69 crore, respectively.
The scope of the scheme also include works procurement and earning contracts. Relief was also provided to MSMEs debarred for default in execution of contracts.
"The relief provided under this scheme was in continuation to the efforts of the Government in promoting and sustaining the MSME sector severely impacted by the COVID-19 pandemic," the ministry added.
Source Name : Economic Times