city New Delhi: Latest News

Penalty on small suppliers‘ failure to execute contracts during covid to be returned: Centre

NEW DELHI : In a major relief to small suppliers, the Centre on Monday asked various ministries to refund the performance security, bid security and liquidated damages forfeited or deducted during the COVID-19 pandemic. The move gives effect to finance minister Nirmala Sitharaman’s announcement on 1 February in her budget speech that in cases of failure by micro, small and medium enterprises (MSMEs) to execute contracts during the Covid period, 95% of the forfeited amount relating to bid or performance security, will be returned to them by the government and state-owned companies. The minister said in her speech that this would provide relief to MSMEs.

“95% of the bid security (Earnest Money Deposit), if any, forfeited from MSME firms in tenders opened between 19 February 2020 and 31 March 2022 shall be refunded," the department of expenditure said in an order. Also, 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.

It added that in case any 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 procuring entity. However, in 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.

covid-19 2020 pandemic Government Department Provident Enterprise

Nirmala Sitharaman

All news where city New Delhi is mentioned

Nirmala Sitharaman - Moragoda meets Indian Finance Minister ahead of G20 Finance Ministers’ Meeting - - city New Delhi - India - Sri Lanka
Moragoda meets Indian Finance Minister ahead of G20 Finance Ministers’ Meeting
High Commissioner of Sri Lanka to India, Milinda Moragoda met with the Finance and Corporate Affairs Minister of India Smt. Nirmala Sitharaman on Tuesday (14) at the Ministry of Finance in New Delhi, as the latest of a series of meetings he has had with her since November 2021.The meeting between the Finance Minister of India and the High Commissioner of Sri Lanka took place just ahead of the first meeting of the G20 Finance Ministers scheduled to be held on 24-25 February 2023 in Bengaluru, chaired by Minister Sitharaman.During the discussion, High Commissioner Moragoda once again thanked Minister Sitharaman for the unprecedented emergency assistance that India has extended to Sri Lanka and for the timely issuance of India’s financial assurances to the International Monetary Fund, concerning the country’s debt restructuring process.The High Commissioner also thanked India and Minister Sitharaman for the assistance being provided to Sri Lanka in the present economic recovery phase, in particular for the necessary regulations and approvals that are being set in place to facilitate rupee trade between the two countries. The discussion also focused on the ways and means to utilize the available resources in the 1 billion USD Indian line of credit to import urgently required essential pharmaceuticals, which are in short supply in Sri Lanka.