Finance Secretary TV Somanathan announced that the Union government has successfully settled 43,904 claims amounting to Rs 700 crore under the Vivad se Vishwas II scheme for micro, small, and medium enterprises (MSMEs). Launched as part of the FY24 Budget, the scheme addresses contractual disputes and aims to provide relief to MSMEs.
Significant Relief for MSMEs
Somanathan highlighted that the resolution of these claims, with approximately 4,000 more yet to be decided, has provided substantial relief to numerous MSMEs. The successful settlements not only address existing disputes but also render these businesses eligible for additional credit and future supplies.
Vivad se Vishwas II Scheme Details
The Vivad se Vishwas II scheme, initiated on July 15, focuses on resolving disputes related to government contracts. Originally, the deadline for claim submissions by contractors was set for October 31, which was later extended to December 31 by the Department of Expenditure. The scheme covers domestic contractual disputes involving either the government of India or government undertakings.
Under the scheme, settlements for court awards passed on or before April 30, 2023, offer contractors up to 85% of the net amount awarded or upheld by the court. For arbitral awards passed on or before January 31, 2023, the settlement amount is up to 65% of the net amount awarded. This initiative aims to streamline dispute resolution and facilitate a smoother business environment for MSMEs
