Budget 2023: Relief to MSMEs, order to return the amount seized due to non-fulfillment of government contracts during Corona

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Budget 2023: Relief to MSMEs, order to return the amount seized due to non-fulfillment of government contracts during Corona

Big Relief To MSME: The Modi government has given a big relief to Micro Small Medium Enterprises. It has been decided by the Ministry of Finance to give this relief to MSMEs for the Corona period. The Department of Expenditure, which comes under the Ministry of Finance, has issued an order to all the Ministries and Departments to return the amount of security deposits of MSMEs confiscated due to not being able to complete the contract during the Corona period. 

Finance Minister Nirmala Sitharaman had announced this relief under the Vivad se Vishwas scheme in her budget speech during the general budget presented for 2023-24. The Finance Minister had said in his budget speech that 95% of the bid amount or performance security of MSMEs forfeited by the government and PSUs due to non-fulfillment of contracts during the COVID-19 times, will be given to MSMEs. will be returned. This will be of great help to MSMEs. 

Government provides a big relief to MSMEs for COVID-19 period; fulfills promise announced in Union Budget 2023-24.

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— Ministry of Finance (@FinMinIndia) February 6, 2023

Five days after the Finance Minister’s budget speech, the Department of Expenditure has issued orders to return the seized amount of MSMEs from all ministries and government departments. In the press release issued by the Ministry of Finance, it has been told that the biggest crisis of the Corona epidemic had a bad effect on the  economy. It had a very bad effect on MSMEs. The difficulty faced by the MSMEs in the last two years due to the Corona epidemic has been brought to our attention. According to the Finance Ministry, the government has made several announcements to give relief to MSMEs. Now the government has decided to give additional relief. Which is as follows. 

1. 95% of the forfeited performance security amount will be refunded. 

2. 95% of the forfeited bid amount submitted by MSMEs for tenders opened between February 19, 2020 and March 31, 2022 will be  returned to MSMEs. 

3. 95 percent of the liquidated damages recovered from such MSMEs will also be returned. 

4. If a company has been banned from doing government work due to non-completion of contract work during the Corona period, it will be withdrawn.  

5. Whatever amount will be returned to MSMEs, they will not get any interest. 

According to the Finance Ministry, the process of giving relief through Government e-Market Place (GeM) will be notified separately. 

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