NEW DELHI, Feb. 7 (Xinhua) -- The Indian government has ordered its ministries to refund performance security, bid security and liquidated damages forfeited from micro, small and medium enterprises (MSMEs) during the COVID-19 pandemic period, officials said Tuesday.
The order issued by the federal ministry of finance on Monday said the move provided a major relief to MSMEs.
"COVID-19 pandemic, one of the biggest crises in human history, had a devastating impact on the economy. It had a huge adverse impact on the MSMEs too. A number of MSMEs had highlighted the difficulties being faced by them in the last two years due to COVID-19 pandemic. To provide relief to the MSMEs, government has in the last two years, announced many benefits for them," the ministry in a statement said.
"As a follow-up to the relief measures announced earlier, the ministry of finance decided that 95 percent of the performance security forfeited from such firms shall be refunded," it said.
The ministry added that 95 percent of the bid security (earnest money deposit), if any, forfeited from MSME firms in tenders opened between Feb. 19, 2020 and March 31, 2022 shall be refunded. Likewise, 95 percent of the liquidated damages deducted from such firms shall also be refunded.
According to the ministry, no interest shall be paid on such refunded amount and the grant of relief will be monitored through a government e-marketplace. ■
