Union Budget 2023: FinMin notifies refund of security deposits to MSMEs

In her budget speech, FM had proposed refund of 95% of amount forfeited on account of non-performance of contract due to Covid

The Finance Ministry on Monday notified the FY24 Budget announcement, asking departments and public sector units to refund securities deposited by micro, small and medium enterprises (MSMEs) during the Covid-19 pandemic.

“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. This will provide relief to MSMEs,” finance minister Nirmala Sitharaman said in her Budget speech last week.

The relief will be provided in all contracts for procurements of goods and services, entered into