Credit line

Government approves proposal to increase expenditure on emergency line of credit guarantee scheme from Rs 50,000 cr to Rs 5 lakh-crore : The Tribune India

Tribune press service

New Delhi, August 17

The government on Wednesday approved a proposal by the Ministry of Finance to increase the expenditure of the Emergency Credit Line Guarantee Scheme (ECGLS) from Rs 50,000 crore to Rs 5 lakh crore and the increased amount will be set aside for l hospitality and related businesses.

Briefing the media on the decisions of the Union Cabinet, chaired by Prime Minister Narendra Modi, Minister of Information and Broadcasting Anurag Thakur said the hike in the amount was done due to severe disruption caused by the COVID-19 pandemic in hospitality and related sectors.

In the Union Budget 2022-23, there was a proposal to increase the limit of the ECLGS from Rs 4.5 lakh to Rs 5 lakh crore to help the hotel sector affected by the pandemic.

He said loans worth around Rs 3.67 lakh crore have been sanctioned under the ECLGS until August 5, 2022.

On whether there is a cap on the size of hospitality businesses benefiting from the credit facility, Thakur said over 90% of the credit would be available to micro, small and medium-sized enterprises (MSMEs) engaged in the area.

Under this scheme, companies get a credit facility for their working capital needs without any collateral and the government stands as a guarantee for the credit offered to them.