New Delhi: COVID-19 posed significant challenges to businesses, but in a major relief for Micro, Small, and Medium Enterprises (MSMEs), more than 10,000 MSME claims have been accepted under the Vivad se Vishwas – I scheme. The Indian government’s initiative provides necessary relief for MSMEs who have been adversely affected by the pandemic.
This has resulted in the allocation of more than Rs. 256 crore to MSMEs and an increase in the flow of bank credit by removing guarantees.
Performance of TOP FIVE Ministries in terms of claims settled and amount paid is given in the table below:
|Name of Ministry||Amount paid (crore)||Number of claims accepted|
|Ministry of Petroleum and Natural Gas||116.47||2807|
|Ministry of Railways||79.16||2090|
|Ministry of Defence||23.45||424|
|Ministry of Steel||14.48||244|
|Ministry of Power||6.69||119|
The Vivad se Vishwas I – Relief for MSMEs scheme was introduced by the Union Finance Minister during the Budget Speech of 2023-24. This initiative was launched by the Ministry of Finance via the Government e-Marketplace (GeM) portal on 17.04.2023. The GeM portal has set the deadline for submission of claims for relief under the scheme on 31.07.2023. GeM has also developed a dedicated portal specifically for this scheme.
The scheme and procedure for lodging claims were detailed by the Department of Expenditure on 11.04.2023. Subsequently, the scope of the scheme was expanded to include works procurement and earning contracts. Relief was provided under the scheme through a refund of 95% of the deducted performance security, bid security, and liquidated damages. Defaulting MSMEs previously barred from working with the government can now apply for relief programs intended to help promote and sustain their businesses after the COVID-19 pandemic impacted them so severely.