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The new 12 months might ring in some relief for India’s Micro, Small and Medium Enterprises (MSMEs) embroiled in disputes with central authorities companies because of the COVID-19 pandemic, with the Centre reviving a scheme to settle their claims in such instances.
Starting January 1, 2024, MSMEs can submit recent claims beneath the Vivad Se Vishwas I scheme, which had initially admitted claims between mid-April to finish of July this 12 months. The new window for companies to file claims beneath the scheme, which had settled ₹650 crore in nearly 44,000 instances by the start of December, will now be stored open until March 31.
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“It has been brought to the notice of this Department that eligible MSMEs could not lodge their claims on the portals because of lack of information about the scheme,” the Department of Expenditure within the Finance Ministry stated in an workplace memo dated December 22. “In view of above, it has been decided that eligible claims under the subject scheme can now also be submitted from 1.1.2024 to 31.03.2024,” the memo added.
Announced by Finance Minister Nirmala Sitharaman within the Union Budget 2023-24, the Vivad Se Vishwas (VSVS) I scheme was geared toward offering relief to MSMEs unable to adjust to central authorities contracts because of the pandemic. Launched on April 11, it coated all procurement contracts associated to items, companies and works entered into by authorities departments.
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(*1*) stated KE Raghunathan, nationwide chairman, Association of Indian Entrepreneurs.
“This is a classic case of the gap between government’s intent and its directions. Normally such schemes are conceived to prevent misuse, but it looks like this scheme is designed to prevent even genuine users from availing it,” he added, urging MSMEs’ safety deposits should be returned with curiosity, in any other case they stand to lose practically 36% of the sum in three years.
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The same VSVS II scheme was launched to resolve pending contractual disputes associated to public procurement. Claims had been accepted beneath the scheme until October, and greater than 900 claims value ₹20,000 crore had been acquired. By mid-December, claims value ₹1,652 crore had been settled beneath this scheme.
