Government accepts over 10K MSME claims worth 256cr refunds
ECONOMY & POLICY

Government accepts over 10K MSME claims worth 256cr refunds

In a significant effort to bolster Micro, Small, and Medium Enterprises (MSMEs) impacted by the COVID-19 pandemic, the Indian government has approved more than 10,000 claims, amounting to refunds worth INR 256 crore, under the Vivad se Vishwas-I dispute resolution scheme. This initiative enables MSMEs to seek refunds of up to 95% of performance or bid security, as well as liquidated damages that were forfeited by government departments and public sector entities during the pandemic.

The Vivad se Vishwas-I scheme, introduced as part of the 2023-24 Budget, was officially launched on April 17. MSMEs were given the opportunity to submit claims for relief on the Government e-Marketplace (GeM) portal, with the deadline for submissions set at July 31, 2023.

A statement from the Finance Ministry underscored the scheme's positive impact, noting, "In a significant move aimed at providing relief to micro, small, and medium enterprises (MSMEs) during the Covid-19 pandemic, various ministries and departments of the government of India have approved more than 10,000 claims under the Vivad se Vishwas-I scheme. This has resulted in the disbursement of over INR 256 crore to MSMEs and has also facilitated an increase in bank credit by releasing guarantees."

This financial support is expected to alleviate the economic challenges faced by MSMEs during the pandemic, providing them with the much-needed resources to recover and expand their operations. Moreover, it is anticipated that this move will stimulate bank credit by freeing up guarantees and creating a more favorable environment for MSMEs to conduct their business activities.

The Indian government's commitment to supporting MSMEs through initiatives such as Vivad se Vishwas-I underscores its dedication to economic recovery and growth, particularly for smaller enterprises that play a vital role in the country's economic landscape.

In a significant effort to bolster Micro, Small, and Medium Enterprises (MSMEs) impacted by the COVID-19 pandemic, the Indian government has approved more than 10,000 claims, amounting to refunds worth INR 256 crore, under the Vivad se Vishwas-I dispute resolution scheme. This initiative enables MSMEs to seek refunds of up to 95% of performance or bid security, as well as liquidated damages that were forfeited by government departments and public sector entities during the pandemic. The Vivad se Vishwas-I scheme, introduced as part of the 2023-24 Budget, was officially launched on April 17. MSMEs were given the opportunity to submit claims for relief on the Government e-Marketplace (GeM) portal, with the deadline for submissions set at July 31, 2023. A statement from the Finance Ministry underscored the scheme's positive impact, noting, In a significant move aimed at providing relief to micro, small, and medium enterprises (MSMEs) during the Covid-19 pandemic, various ministries and departments of the government of India have approved more than 10,000 claims under the Vivad se Vishwas-I scheme. This has resulted in the disbursement of over INR 256 crore to MSMEs and has also facilitated an increase in bank credit by releasing guarantees. This financial support is expected to alleviate the economic challenges faced by MSMEs during the pandemic, providing them with the much-needed resources to recover and expand their operations. Moreover, it is anticipated that this move will stimulate bank credit by freeing up guarantees and creating a more favorable environment for MSMEs to conduct their business activities. The Indian government's commitment to supporting MSMEs through initiatives such as Vivad se Vishwas-I underscores its dedication to economic recovery and growth, particularly for smaller enterprises that play a vital role in the country's economic landscape.

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