MSMEs’ claims worth Rs 700 cr settled: Fin Secy

The Union government has successfully resolved 43,904 claims totaling Rs 700 crore under the Vivad se Vishwas II scheme, aimed at settling contractual disputes involving micro, small, and medium enterprises (MSMEs). Finance Secretary TV Somanathan announced that while around 4,000 claims are yet to be decided, a significant majority have been addressed.

This initiative has provided substantial relief to numerous MSMEs, rendering them eligible for additional credit and supplies. The scheme, applicable to domestic contractual disputes involving the government or its undertakings, was launched on July 15 with a deadline initially set for October 31, later extended to December 31. The settlement amounts offered under the scheme vary based on court or arbitral awards and their respective dates, reaching up to 85% for court awards passed on or before April 30, 2023, and up to 65% for arbitral awards passed on or before January 31, 2023.