Vivad se Vishwas II
Context:
The Ministry of Finance has recently introduced the “Vivad se Vishwas II” scheme to efficiently resolve ongoing contractual disputes involving government entities.
Relevance:
GS-03 (Indian Economy- Schemes and policies)
Main highlights:
- Vivad Se Vishwas-II is an initiative to resolve long-standing contractual disputes involving government agencies. It focuses on disputes challenging Arbitral Awards in courts, which are final decisions in arbitration.
- The scheme offers standardized terms and various settlement options based on dispute pendency.
- The objective of the scheme is to resolve contractual disputes that promotes ease of doing business with the government that fosters new attractive investments in the country.
- The plan will encompass conflicts involving Central government bodies, including independent entities, public banks, financial institutions, central public sector companies, union territories, and Delhi’s National Capital Territory, along with their related agencies.
- Some organizations, like metro corporations with 50% Centre stake, can opt out with board consent.
- If there are Court awards, contractors can receive settlements of up to 85% of the net amount given or approved by the court.
- In situations involving arbitral awards, the maximum threshold for settlements will be around 65% of the net amount.
