Vivad Se Vishwas I - Relief For MSMEs001

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No.F.

1/1/2023-PPD
Government of lndia
o1" Ministry of Finance
) o
Department of Expenditure
Procurement Policy Division
sry
264-C, North Block, New Delhi.
6th February, 2023.

Office Memorandum

Subject: Vivad Se Vishwas I - Relief for MSMEs

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 ln 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 Ministryi
DepartmenU attached or subordinate office/ autonomous body/ Central Public Sector
Enterprise (CPSE/ Public Sector Financial lnstitution 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
31.0s.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) ln 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 procuri n entity
owever, rn case a firm has been ignored for placement of any contract
due to debarment in the interim period (i.e. date of debarment and the date of
revocation under this order). no claim shall be entertained.
(v) No interest shall be paid on such refunded amount.
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4. Government e-Marketplace (GeM) shall provide an online portal for the purpose
implementation of this order. Broad functionality of the portal shall be as follows:

Step 1: GeM shall provide functionality to MSME Vendors to register on the portal
through its authorized personnel.
Step 2: The registered contractor shall list out the applicable contracts on the portal.
The list of the procuring entities shall be available only through drop down
menu, which should be changed only with the approval of DoE. The details
of the dispute should contain atleast following details: contract number,
coniracting authority, paying authority, Deducted/ forfeited amount.
step 3: GeM portal shall intimate through email to nodal officers of each procuring
entity to verify the claim of the MSME vendor.
step 4: The nodal officer of the procuring entity shall after due diligence and refund
of due amount as per this order shall update the portal with the amount'
date and transaction details of the payment.
step 5: Reports to track pendency in each procuring entity shall be provided by
GeM.
5 The date of commencement of the scheme shall be notified separately \rf
V, t!
(Kanwalp
Directo(PPD)
Tel.No. 2309 381 1; email: kanwal.irss@gov in
To
1. Secretaries of all Ministries/ Departments of Government of India for information
and necessary action. They are also requested to inform these provisions to all
procuring entities under their administrative control.
2. becretary, Department of Public Enterprises with a request to reiterate these
orders in respect to public enterprises.
3. Secretary, Department of Financial services with a request to reiterate these
orders in respect to public sector financial institutions'
4. Chief Secretaries/ Administrators of Union Territories/ National Capital Territory
of Delhi.
5. CEO/ GeM with a request to ensure implementation of this order on GeM'

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