COVID-19-hit MSMEs can tap new relief window from Jan. 1

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Last Updated30/12/2023

Centre has revived a scheme and asked Micro, Small and Medium Enterprises (MSMEs) to settle their claims

Starting January 1, 2024, MSMEs can submit fresh claims under the Vivad Se Vishwas I scheme, which had originally admitted claims between mid-April to end of July this year.
The Vivad Se Vishwas (VSVS) I scheme was aimed at providing relief to MSMEs unable to comply with central government contracts due to the pandemic.
Launched on April 11, it covered all procurement contracts related to goods, services and works entered into by government departments.
A similar VSVS II scheme was launched to resolve pending contractual disputes related to public procurement.
Claims were accepted under the scheme till October, and more than 900 claims worth ₹20,000 crore were received.

It is a voluntary settlement scheme to resolve long-standing contractual disputes involving government agencies.
It is designed specifically for disputes where the Arbitral Award is under challenge in a court.
Arbitral Award is an award that brings finality to the arbitral proceeding.
Under the scheme, standardised terms will be introduced, and graded settlement options will be provided based on the level of pendency of the dispute.