Govt approves proposal to hike Emergency Credit Line Guarantee Scheme outlay by Rs 50,000 cr to Rs 5 lakh-crore
New Delhi, August 17
The government on Wednesday approved a proposal of the Ministry of Finance to enhance the outlay of the Emergency Credit Line Guarantee Scheme (ECGLS) by Rs 50,000 crore to Rs 5 lakh crore and the increased amount will be set aside for the hospitality and related businesses.
Briefing media about the decisions of the Union Cabinet, chaired by Prime Minister Narendra Modi, Information & Broadcasting Minister Anurag Thakur said, the hike in the amount has been made on account of the severe disruptions caused by the COVID-19 pandemic in the hospitality and related sectors.
In the 2022-23 Union Budget, there was a proposal for raising the limit of ECLGS from Rs 4.5 lakh to Rs 5 lakh crore to help hospitality sector hit by the pandemic.
He said that loans worth around Rs 3.67 lakh crore have been sanctioned under ECLGS till August 5, 2022.
On a question whether there is cap on the size of hospitality enterprises availing the credit facility, Thakur said, more than 90 percent of the credit would be available to Micro, Small, Medium Enterprises (MSMEs) engaged in the sector.
Under the scheme, enterprises get credit facility for their working capital requirement without any collateral and the government stands as a guarantee for the credit offered to them.
