New Delhi, Dec 1 (KNN) The central government has cleared about 43,904 claims by MSMEs which is worth Rs 700 crore under the Vivad se Vishwas II (contractual disputes) scheme, said Finance Secretary TV Somanathan on Thursday.

The scheme was announced in the FY24 Budget which aims to provide relief to the MSMEs. 

“There are approximately 4,000 claims remaining to be decided but a majority have been decided. 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.

(KNN Bureau)