MANU/EXPE/0001/2023

Ministry : Ministry of Finance

Department/Board : Expenditure

Office Memorandum No. : F.1/1/2023-PPD

Date : 06.02.2023

Vivad Se Vishwas I-Relief for MSMEs

1. Government has been getting many references from Micro, Small and Medium Enterprises (MSMEs) regarding difficulties being faced by them in the last two years due to COVID 19 pandemic. The Government had provided certain benefits to the industry (including MSMEs) in Government contracts in the past.

2 In order to further support MSMEs, it has been decided to provide relief in all contracts for procurement of Goods and Services, entered into by any Ministry/Department/attached or subordinate office/autonomous body/Central Public Sector Enterprise (CPSE)/Public Sector Financial Institution etc. with MSMEs, which meet the following criteria:

(i) The contractor/supplier should be registered as a Medium, Small or Micro Enterprise with Ministry of MSME, as on 31.03.2022.

(ii) The original delivery period/completion period was between 19.02.2020 and 31.03.2022.

3. For the MSMEs which meet the specified criteria, the following reliefs shall be provided:

(i) 95% of the performance security forfeited from such firms shall be refunded.

(ii) 95% of the Bid security (Earnest Money Deposit), if any, forfeited from MSME firms in tenders opened between 19.02.2020 and 31.03.2022 shall be refunded.

(iii) 95% of the Liquidated Damages (LD) deducted from such firms shall also be refunded. LD so refunded shall not exceed 95% of the performance security stipulated in the contract.

(iv) In case firm has been debarred only due to default in execution of such contracts, such debarment shall also be revoked, by issuing an appropriate order by the procuring entity.

However, in case a firm has been ignored for placement of any cont........