The Department of Expenditure, Ministry of Finance, has launched the scheme, “Vivad se Vishwas I – Relief to MSMEs” for providing relief to Micro, Small and Medium Enterprises (MSMEs) for COVID-19 period. In cases of failure by MSMEs to execute contracts during the COVID period, 95 per cent of the forfeited amount relating to bid or performance security will be returned to them by Government and Government undertakings.
The Ministry of Finance, through this scheme, decided to give following additional benefits to eligible MSMEs, affected during the COVID-19 period:
- 95% of the performance security forfeited shall be refunded.
- 95% of the Bid security shall be refunded.
- 95% of the Liquidated Damages (LD) deducted shall be refunded.
- 95% of the Risk Purchase amount realized shall be refunded.
- In case any firm has been debarred only due to default in execution of such contracts, such debarment shall also be revoked, by issuing an appropriate order by the procuring entity.
Last date for submitting claims under the scheme is 30.06.2023.