The Central government has accepted more than 10,000 claims of micro, small and medium enterprises (MSMEs) under the Vivad se Vishwas - I scheme, granting about ₹256 crore to firms entangled in disputes.
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The scheme was announced in this year’s Budget to provide relief to MSMEs impacted by the COVID-19 pandemic. Relief claims were accepted between April and July this year. The scheme refunded 95% of the deducted performance and bid security and liquidated damages. Relief was also provided to MSMEs debarred for default in execution of contracts.
The Finance Ministry, in a statement on Tuesday, said aside from the grants to 10,000-odd firms, the scheme has also increased the flow of bank credit by freeing up guarantees.
“The highest relief of Rs. 116.47 crore has been granted by the Ministry of Petroleum and Natural Gas,” the statement said. These related to 2,807 accepted claims that were settled by agencies under the ministry’s administrative control. The Railways Ministry settled little over 2,000 claims worth ₹79 crore, followed by the Defence Ministry which accepted 424 claims worth ₹23.45 crore.