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Vivad se Vishwas 2.0


Source: LM

 Context: The “Vivad se Vishwas 2.0″ scheme has been launched by the Department of Expenditure, Ministry of Finance, with the aim of resolving contractual disputes involving the government and government undertakings.

What are contractual disputes?

Contractual disputes are disagreements or conflicts that arise between parties involved in a contractual agreement. These disputes occur when one or more parties believe that the terms, conditions, or obligations outlined in the contract have been violated, misunderstood, or not properly fulfilled.


How will the scheme help resolve disputes?

The scheme offers a standardized voluntary (one-time settlement) approach with graded terms based on the level of dispute pendency.


  • For all those disputes in which the Court award (passed up to 30th April 2023), contractors will be offered settlement amounts up to 85% of the net amount awarded or upheld by the court.will be
  • For arbitral orders (passed up to 31st Jan 2023), the settlement amount offered will be up to 65% of the net amount awarded.

Implementation: By utilizing the government e-marketplace (GeM) platform for processing claims.

Significance: The scheme streamlines the resolution process and aims to expedite the settlement of contractual disputes.

Previously, the Vivad se Vishwas scheme was announced in Union Budget 2020-21 for reducing litigations in the direct taxes payments. Vivad se Vishwas I was launched to provide relief to MSMEs during the COVID-19 period