Finance Ministry gives MSMEs time till June 30 to claim covid relief

New Delhi, May 3 (KNN) Micro, Small and Medium Enterprises (MSMEs) have time till 30 June, 2023 to submit their claims under the scheme provided for covid related relief, said the Ministry of Finance.

According to a report by Mint, the Ministry said early this week that MSMEs need to claim their compensation for damages from non-execution of contracts during the covid period under the provided scheme by end of June.

The ‘Vivad se Vishwas I - Relief to MSMEs scheme’ was announced in the Union Budget 2023-24 by Finance Minister Nirmala Sitharaman.

The relief provided under this scheme is in continuation to the efforts of the government in promoting and sustaining the MSME sector.

“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 the government. This will provide relief to MSMEs,” the minister had said.

Broad structure of the scheme and instructions in this regards has already been issued by the ministry.

It extended the relief to cover more cases and relaxing the limits of refunds.

Under the scheme, ministries have been asked to refund performance security, bid security, and liquidated damages forfeited/deducted during the COVID-19 pandemic.  (KNN Bureau)