Framework to implement Vivad Se Vishwas-I
During COVID, the GoI had collected a forfeited amount. Forfeited means the loss of something. When someone fails to pay the money he owes, forfeiture occurs. GoI collected forfeited amounts (something like a fine) from companies that failed to oblige their contract and also for other reasons. Finance Minister Nirmala Sitaraman recently (while presenting the budget) announced that these forfeited amounts are to be returned; as they hit the MSME sector.
What is the issue?
The MSME sector runs on a small investment. The rotation of money in the hands of MSMEs is also less. During COVID, the MSME sector faced several challenges. Their day-to-day activities, transport, raw materials, and other activities were all affected due to the COVID lockdown. For this reason, they couldn’t stand by their contract. The government had collected forfeits for their failed actions. This happened because the government couldn’t take immediate steps and address the issue quickly. With COVID pressure easing on the government, GoI is returning the forfeited money collected.
All these actions are to be done under VIVAD SE VISHWAS – Scheme.
95% of the forfeits were related to bids placed by MSMEs. MSME has a huge role in the economic growth of the country. They contribute 36% of the total manufacturing sector of India.
Category: Economy & Banking Current Affairs - 2022