The Finance Ministry is slated to review the amount to be returned to micro, small and medium enterprises (MSMEs) today under the Vivad se Vishwas Scheme. The move comes at a time when the government is gearing up the rollout of the scheme. MSMEs form an important part of the Indian economy, making up 45 percent of the country’s manufacturing output, 30 percent of its GDP, and 48 percent of its exports.
Under the Vivad Se Vishwas Scheme, the government will refund up to 95 percent of the amount forfeited by MSMEs for not fulfilling contractual obligations due to the Covid pandemic. The Finance Secretary, T.V. Somanathan, is likely to head the review meeting and ensure the process for roll out is in place.
The scheme will be applicable to all MSMEs registered with the Ministry of MSMEs as on March 31, 2022, provided they had bid for a contract between February 19, 2020 and March 31, 2022. Through the scheme, the government seeks to help MSMEs overcome the financial obligations they have incurred during Covid-19.
Rajat Mohan, Senior Partner of AMRG & Associates, believes the Vivad Se Vishwas Scheme is a significant step that will aid in the revival of the MSME sector. He stressed that a successful implementation of the scheme will help to restore small business owners’ faith in the government’s long-term policies, and attract more investments to the MSME sector, eventually leading to more entrepreneurship and employment opportunities in India.
The Ministry of MSMEs is responsible for the promotion of micro, small and medium enterprises (MSMEs) in India. It provides an overall support and guidance to MSMEs. The ministry is currently headed by the Minister of State (Independent Charge) for MSMEs, Shri Nitin Jairam Gadkari, and is headquartered in Delhi.