FinMin extends deadline for MSMEs to submit refund claims of forfeited bid security in govt contracts till July 31

Eligible claims shall be processed only through GeM.

The finance ministry has extended the deadline for MSMEs by one month, till July 31, to submit refund claims for performance or bid security and liquidated damages forfeited by government departments and public sector entities during the Covid-19 period.

To give relief to MSMEs, finance minister Nirmala Sitharaman in 2023-24 Budget announced 'Vivad se Vishwas-I' scheme which provides that 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 government and government undertakings.

The scheme commenced from April 17 and the Department of Expenditure under the finance ministry had fixed the last date for claim submission as June 30.

The Expenditure department has now issued amendments to the scheme and extended the deadline for submission of bids till July 31.

Under the scheme, ministries have been asked to refund 95 per cent of the performance security, bid security and liquidated damages forfeited/ deducted during the COVID-19 pandemic.

Certain relief has also been provided to MSMEs debarred for default in execution of contracts during the Covid-19 period till March 31, 2022.

All contractors or suppliers registered as micro, small and medium enterprises (MSME) with the ministry of MSME as on March 31, 2022, would be eligible to claim a refund of the forfeited amount for contracts which had an original delivery or completion period between February 19, 2020, and March 31, 2022.

This relief will be provided in all contracts for the 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.

The government e-Marketplace (GeM) has developed a dedicated web page for implementation of this scheme. Eligible claims shall be processed only through GeM.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)