Rs 50,000 crore additional loan fund for hospitality sector

New Delhi, August 17

The government today approved a proposal by the Ministry of Finance to enhance the outlay of the Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 50,000 crore to Rs 5 lakh crore and the increased amount will be set aside for hospitality and related businesses.

Briefing the media about the decisions of the Union Cabinet, chaired by Prime Minister Narendra Modi, Information & Broadcasting Minister Anurag Thakur said the hike had been made on account of the severe disruptions caused by the Covid pandemic in the hospitality and related sectors.

Meanwhile, the government today approved a proposal to give support of 1.5 per cent to all financial institutions on the interest subvention of 3 per cent given to farmers on short-term agriculture loans of up to Rs 3 lakh.

Union Minister Anurag Thakur said the move was to ensure adequate credit flow in the farm sector.