Over Rs 700 Crore Settled: 44,000 MSME Claims Resolved

Posted under: MSME
Date: 2023-12-01
Over Rs 700 Crore Settled: 44,000 MSME Claims Resolved

Under the Vivad se Vishwas I – Relief for MSMEs scheme, the Indian government has settled 43,904 claims totaling Rs 700 crore for micro, small, and medium enterprises (MSMEs), according to Finance Secretary TV Somanathan. The scheme, addressing pending disputes related to government contracts during the Covid pandemic, has brought substantial relief to MSMEs, making them eligible for further credit. The majority of around 4,000 remaining claims have been resolved, providing significant relief to several MSMEs. MSMEs unable to execute contracts during the pandemic period are entitled to a 95% refund of the performance security, bid security, liquidated damages, and risk purchase amount forfeited. The scheme also allows for revoking debarment for companies defaulting on contract execution. The last date for MSMEs to submit claims on the Government eMarketplace portal was extended to December 31.

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