Attention Entrepreneurs: Government's Urgent Push to Empower MSMEs with Vivad se Vishwas-I
It felt as if COVID-19 put a spoke in one's wheels when it sent shockwaves across the country. Not only did it demolish great businesses, but it also caused irreversible damage that made things topsy-turvy. Now, to repair this damage, the Indian Government has acknowledged and accepted approximately 10,000 claims from micro, small, and medium enterprises under the Vivad se Vishwas-I Scheme. These claims amount to a refund of around RS 256 Crores.
It is worth noting that the scheme has allowed a significant refund of 95% of the performance or bid security, including the liquidated damages that were forfeited during the COVID-19 pandemic. This initiative aims to make the information accessible to a wide audience in India.
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About Vivad se Vishwas-I Scheme
The Department of Expenditure and Ministry of Finance had launched the scheme, known as Vivad Se Vishwas I, which provided the relaxation, mainly to the Micro, Small and Medium Enterprises (MSMEs) during the pandemic. It had been notified and declared in the Union Budegrt 2023-24 by the Union Finance Minister Smt. Nirmala Sitharaman.
In this program, small and medium-sized enterprises (MSMEs) have the opportunity to receive a refund of 95% of their bid security and any damages caused by government departments and public sector entities during the pandemic. The applications for the same were available on April 17. The deadline for submitting the same claims through the GeM portal was July 31, 2023, respectively.
Official Pronouncement: Verdict on MSMEs by the Ministry of Finance
The Finance Ministry, in a statement on Tuesday, made the following remark, which included, “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," it said.
It is recorded that the highest relief around Rs 116.47 has been given by the Ministry of Petroleum and Natural Gas, according to what the statement had mentioned. With that being said, about 2807, were the accepted claims, which were further settled by the ministry’s administrative control.
For instance, The Railways Ministry had settled with little or over 2,000 claims that have been worth ₹79 crores, followed by the Defence Ministry, which accepted a total of 424 claims, that are worth ₹23.45 crore.
Salient Features of Vivad Se Vishwas-I Scheme for MSMEs
The Ministry of Finance, through the Vivad Se Vishwas- I scheme made the following points that mainly centred around the benefits that are eligible to MSMEs and include the following point, which focus upon these notable highlights-
- 95 % of the performance security as forfeited will be refunded
- 95% of the Bid security will be refunded
- 95% of the Liquidated Damages (LD) deducted would be refunded.
- 95% of the Risk Purchase amount has to be refunded.
If a company has been banned because of problems with fulfilling these contracts, the procuring entity will cancel the ban when issuing the order.
However, if the firm has disregarded the contract's placement in any situation, it is important to note that no claims can be considered during the interim period, which is from the date of the debarment until the date of revocation as stated in the order.
This promoted initiative emphasizes the unparalleled commitment of the government to support MSMEs and ensure the sustained economic growth of the country. Entrepreneurship fosters innovation and establishes industries that align with market trends, thereby contributing to job creation and driving economic development.
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