© The Indian Express Pvt Ltd
Tags:
Journalism of Courage
The Union government has settled 43,904 claims worth Rs 700 crore by micro, small and medium enterprises (MSMEs) under the Vivad se Vishwas II (contractual disputes) scheme, which was announced in the FY24 Budget, Finance Secretary TV Somanathan said Thursday.
“There are approximately 4,000 claims remaining to be decided but a majority have been decided. This has given substantial relief to a number of MSMEs. Also, this makes them eligible for further credit, for further supply,” he said.
The Vivad se Vishwas II scheme was launched on July 15 to settle disputes in government contracts and the last date for submitting claims by contractors was October 31. Recently, the Department of Expenditure then extended the deadline to December 31.
The scheme is applicable to all domestic contractual disputes where one of the parties is either the government of India or government undertakings. Under the scheme, for court awards passed on or before April 30, 2023 the settlement amount offered to the contractor will be up to 85 per cent of the net amount awarded/upheld by the court. For arbitral awards passed on or before January 31, 2023, the settlement amount offered is up to 65 per cent of the net amount awarded.
