Vivad se Vishwas-I scheme: Claims of over 10,000 MSMEs accepted, Rs 256 cr relief granted since launch

In a significant move aimed at providing relief to Micro, Small, and Medium Enterprises (MSMEs) during the COVID-19 pandemic, the Government of India informed that various Ministries and Departments approved more than 10,000 claims under the Vivad se Vishwas-I scheme. An official release from the Ministry of Finance states that this led to grant of more than Rs 256 crore to MSMEs and an increased flow of bank credit through freeing up of guarantees.

The highest relief of Rs 116.47 crore was granted by the Ministry of Petroleum and Natural Gas (MoPNG). This includes the claims settled and amount paid by the agencies under the administrative control of the MoPNG.

Vivad se Vishwas-I scheme: Performance of top 5 Ministries in terms of claims settled and amount paid 

The Ministry of Petroleum and Natural Gas (MoPNG) has accepted the highest number of claims — 2,807, and paid Rs 116.47 as settlement.

Followed by the Ministry of Railways, which paid Rs 79.16 crore as settlement after accepting 2,090 claims. 

As per the official data, the Ministry of Defence paid Rs 23.45 crore as settlement after accepting 424 claims.

And the Ministry of Steel accepted 244 claims and paid Rs 14.48 crore.

The fifth position on the list was taken by the Ministry of Power, which paid out Rs 6.69 crore and accepted 119 caims.
 

What is Vivad se Vishwas scheme?

The Vivad se Vishwas – I Relief for MSMEs scheme was initially introduced in the Union Finance Minister's Budget Speech for the fiscal year 2023-24.

The Ministry of Finance formally launched the scheme through the Government e-Marketplace (GeM) portal on April 17, 2023. 

Under this scheme, MSMEs were provided relief in the form of a refund, covering 95 per cent of performance security, bid security, and liquidated damages that had been deducted, read the press release.

Additionally, relief was extended to MSMEs that had faced debarment due to defaults in contract execution. These measures were part of the government's broader efforts to bolster and sustain the MSME sector, which had been severely affected by the COVID-19 pandemic.

The Department of Expenditure issued comprehensive guidelines outlining the scheme and the procedure for submitting claims on April 11, 2023. Under this scheme, MSMEs had until July 31, 2023, to submit claims for relief via the GeM portal, which featured a dedicated section for this purpose.

Subsequently, the scheme's scope was expanded to encompass works procurement and earning contracts.

The official release state that the initiative underscores the government's commitment to supporting the MSME sector, ensuring its resilience, and facilitating its continued contribution to India's economic growth. 

(With Agency Inputs)