Business Rule: Under this, a provision has been made to return 95 percent of the forfeited amount related to bid or performance security to MSMEs in case of failure to implement the contract during Kovid. The Finance Ministry said in a statement, “The scheme will start from April 17, 2023 and the last date for submission of claims is June 30, 2023.”
Business: The Finance Ministry on Tuesday gave relief to Micro, Small and Medium Enterprises (MSMEs). Under this, small enterprises have been given time till June 30 to submit applications for forfeiture performance or withdrawal of bid security through government departments and public sector units in case of non-completion of contracts during the Kovid-19 period . Finance Minister Nirmala Sitharaman had announced Vivad se Vishwas-1 in the budget of 2023-24.
MSME
Under this, a provision has been made to return 95 percent of the forfeited amount related to bid or performance security to MSMEs in case of failure to implement the contract during Kovid. The Finance Ministry said in a statement, “The scheme will start from April 17, 2023 and the last date for submission of claims is June 30, 2023.”
Under the Rashi
scheme, ministries have been asked to refund 95 per cent of the amount deducted in lieu of forfeited performance security, bid security and damages during the COVID-19 pandemic. Some relief has also been provided to MSMEs banned for default in execution of contracts during the period of Kovid-19 till March 31, 2022.
Forfeited amount All
those registered with the Ministry of Micro, Small and Medium Enterprises as Micro, Small and Medium Enterprises will be eligible to claim refund of forfeited amount for contractor or supplier contracts whose original delivery or contract completion period is February 19, 2020 to March 31, 2022. The ministry said that the Government e-Market Place (GeM) has prepared a separate ‘web page’ for the implementation of the scheme. Processing of eligible claims will be through GeM only.
