Vivad Se Vishwas I – Relief for MSMEs: Announced by Finance Minister Nirmala Sitharaman in this year’s budget and launched in April, the Vivad Se Vishwas I – Relief for MSMEs scheme allows for a refund of 95 per cent of the performance security, 95 per cent of the bid security, 95 per cent of the liquidated damages (LD), and 95 per cent of the risk purchase amount forfeited or deducted from MSMEs which were unable to execute government contracts during the Covid period.
Moreover, for companies debarred due to default in the execution of such contracts, the scheme allows for revoking the debarment by issuing an appropriate order by the procuring entity. However, there won’t be a claim if a company has been ignored for placement of any contract due to debarment in the interim period (date of debarment and the date of revocation).
Importantly, SMEs are required to be Udyam-registered enterprises on the date of filing for a refund. Moreover, the original delivery period of the contract or completion period stipulated in the contract should be between February 19, 2020, and March 31, 2022. The enterprises will have to share required details such as contract number, contracting authority, paying authority and the deducted amount with respect to the contract applicable with the respective procuring entity.
Also read: Refund MSMEs amounts forfeited during pandemic: Finmin fiat
The government has already directed the ministries to refund the amount forfeited or deducted during Covid from MSMEs. Importantly, the scheme will commence on July 15 and MSME contractors can submit claims till October 31 on the Government e-Marketplace (GeM) portal.
Here’s how to file a claim under Vivad Se Vishwas I – Relief for MSMEs scheme:
- In order to file a claim on the GeM portal, the MSME must be registered on the portal with the required profile as a seller including details such as validation of the company’s PAN, date of business incorporation, CIN, etc.
- Update your profile with the Udyam number and get it validated from ‘My Account’ section
- After validation, go to ‘Dashboard’ and then ‘Vivad se Vishwas – 1’ link at the top to land on the scheme’s dashboard
- To raise a new claim request, click on ‘New Claim Request’
- If the contract was raised on GeM during the Covid period, select the contract from ‘Please Select Type of Contract/Bid’ dropdown and ‘Claim Type’ such as LD refund, performance security refund, etc.
- For contracts raised on GeM, the following section of ‘Organisation Details’ will be auto-populated. This will include details around organisation type, ministry, department, office zone, organisation, buyer name, address, fortified by the buyer, final claim amount, etc
- In case the contract was raised outside GeM, details will have to be filled manually including contract number, date, etc. Also, upload applicable documents as per the claim such as contract document
- Click on the ‘Preview’ button to ensure the information shared is correct and then click on ‘I Agree’
- Your claim form submitted will be visible on the dashboard with the claim ID beginning with CL and other details such as claim type, ministry and department against which the claim has been submitted, its location and status of the claim
- Claim status would show ‘Pending’ for action from the buyer; ‘Approved’, ‘Partially Approved’ if claim is approved for less than the final claimed amount; ‘Settled’ if the payment is made; ‘Rejected’ if the claim is rejected along with the reason for rejection