Finance Ministry asks departments, CPSEs to refund 95% of MSMEs securities till March 2022
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The Finance Ministry has asked all departments and Central Public Sector Enterprises (CPSEs) to refund 95 per cent of the performance or bid security and liquidated damages forfeited/deducted from small and medium businesses in government tenders for over two years till March 31, 2022.
To give relief to micro, small and medium enterprises (MSMEs), Finance Minister Nirmala Sitharaman in 2023-24 Budget announced 'Vivad se Vishwas-I' scheme which provides that in cases of failure by MSMEs to execute contracts during the Covid period, 95 per cent of the forfeited amount relating to bid or performance security will be returned to them by government and government undertakings. This relief will be provided in all contracts for the procurement of goods and services, entered into by any Ministry/ Department/ attached or subordinate office/ autonomous body/ Central Public Sector Enterprise (CPSE)/ Public Sector Financial Institution etc. with MSMEs.
The grant of relief will be monitored through Government e-Marketplace (GeM) and MSME vendors will be able to register on the GeM portal and enter details of the applicable contracts. The nodal officers of each procuring entity would verify the claim of the vendor and refund the due amount. The portal will also provide reports to track pendency with each procuring entity. The date of commencement of the process of applications for relief through GeM will be notified separately.
