In a significant move to support micro, small, and medium enterprises (MSMEs), the Indian government has sanctioned over 10,000 claims under the Vivad se Vishwas-I scheme, resulting in refunds worth ₹256 crore. This scheme allows MSMEs to seek a refund equivalent to 95% of performance or bid security and liquidated damages forfeited during the Covid-19 pandemic period.
The Vivad se Vishwas-I scheme, introduced in the 2023-24 Budget, was launched on April 17, offering MSMEs a valuable opportunity to reclaim funds lost during the challenging period brought about by the Covid-19 pandemic. The last date for the submission of claims for relief on the Government e-Marketplace (GeM) portal was July 31.
A statement from the finance ministry highlighted the government’s commitment to supporting MSMEs and its efforts to provide much-needed relief during the Covid-19 pandemic. The scheme has not only benefited MSMEs financially but has also facilitated increased bank credit flow by freeing up guarantees.
Among the various ministries and departments of the Government of India, the Ministry of Petroleum and Natural Gas has granted the highest relief, totaling ₹116.5 crore. This figure encompasses both settled claims and the amounts disbursed by agencies under the administrative purview of the Ministry of Petroleum and Natural Gas.
The railways and defense ministries have also contributed significantly to the relief efforts, settling claims amounting to ₹79.2 crore and ₹23.5 crore, respectively. The Ministries of Steel and Power have further demonstrated their commitment to the MSME sector by approving refund claims worth ₹14.5 crore and ₹6.7 crore, respectively.
Importantly, the scope of the Vivad se Vishwas-I scheme extends to various aspects, including works procurement and earning contracts, making it a comprehensive initiative aimed at addressing the diverse needs of MSMEs. Relief has also been extended to MSMEs that faced debarment due to defaults in the execution of contracts.
This relief scheme represents a continuation of the government’s ongoing efforts to bolster and sustain the MSME sector, which was severely impacted by the Covid-19 pandemic. By providing financial support and facilitating the release of guarantees, the government is enabling MSMEs to recover and regain their financial stability.
The approval of over 10,000 MSME claims under the Vivad se Vishwas-I scheme is a testament to the government’s commitment to supporting the backbone of India’s economy. As these refunds are disbursed, they will serve as a catalyst for the resurgence of MSMEs and contribute to the nation’s broader economic recovery efforts.
