The Government of India has recently settled a significant number of refund claims for micro, small and medium enterprises (MSMEs) under the dispute resolution scheme known as Vivad se Vishwas-I.
Key Highlights
- Total Claims Settled: The government has resolved a total of 43,904 refund claims from MSMEs.
- Total Amount Refunded: These claims amount to a total of Rs 700 crore.
- Scheme Details: Vivad se Vishwas-I is a dispute resolution scheme that was introduced in the 2023-24 Budget. Under this scheme, MSMEs could claim a refund of 95% of performance or bid security and liquidated damages that were forfeited by government departments and public sector entities during the COVID-19 pandemic.
- Scheme Timeline: The scheme was open for submissions on the GeM portal from April 17, with July 31 as the last date for submission of claims.
- Claims Remaining: There are approximately 4,000 claims still pending to be decided under this scheme.
- Impact on MSMEs: According to Finance Secretary TV Somanathan, the Vivad se Vishwas scheme has provided substantial relief to numerous MSMEs. This relief is part of the ongoing efforts by the government to support and sustain the MSME sector, which was severely impacted by the COVID-19 pandemic.
Significance of the Settlement
- The settlement of these claims is crucial for the MSME sector, as it not only provides immediate financial relief but also enhances their eligibility for further credit and supply opportunities.
- The Vivad se Vishwas-I scheme is a critical step in addressing the financial challenges faced by MSMEs due to the pandemic. By resolving contractual disputes efficiently, the scheme helps in maintaining the liquidity and operational stability of these enterprises.
The resolution of these claims under the Vivad se Vishwas scheme is a significant move by the Indian government to bolster the MSME sector, which plays a vital role in the country’s economy. By providing financial relief and supporting the sustainability of these enterprises, the government is helping to ensure their continued contribution to economic growth and employment.