In a significant development benefiting Micro, Small, and Medium Enterprises (MSMEs), several Ministries/Departments of the Government of India have approved over 10,000 claims from MSMEs under the Vivad se Vishwas – I scheme, which is designed to alleviate the hardships faced by MSMEs during the COVID-19 Pandemic. As a result, more than Rs. 256 crore has been disbursed to MSMEs, leading to enhanced access to bank credit by releasing previously held guarantees.
According to the press release issued by the Ministry of Finance, the Ministry of Petroleum and Natural Gas (MoPNG) has provided the most substantial relief, totaling Rs. 116.47 crore. This figure encompasses both the settled claims and the amounts disbursed by the entities under the administrative jurisdiction of MoPNG.
The “Vivad se Vishwas I – Relief for MSMEs” scheme, initially introduced in the 2023-24 Budget Speech by the Union Finance Minister, was officially inaugurated by the Ministry of Finance via the Government e-Marketplace (GeM) portal on April 17, 2023. The closing date for submitting relief claims through the GeM portal for this scheme was July 31, 2023. GeM had created a specialized portal exclusively for the implementation of this scheme.
The Department of Expenditure provided comprehensive guidance on the scheme’s procedures through an instruction issued on April 11, 2023. Later, the scheme’s scope was broadened to encompass contracts related to procurement and earnings. The scheme offered relief by refunding 95% of deducted amounts for performance security, bid security, and liquidated damages.
Additionally, it extended assistance to MSMEs facing debarment due to contract execution issues. These relief measures were part of the government’s ongoing commitment to support and revive the MSME sector, which had been significantly affected by the challenges posed by the COVID-19 pandemic.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
