New Delhi, 10 Dec (KNN) The Emergency Credit Line Guarantee Scheme (ECLGS) which is supposed to end on 31st March, 2022 is expected to rec...
New Delhi, 10 Dec (KNN) The Emergency Credit Line Guarantee Scheme (ECLGS) which is supposed to end on 31st March, 2022 is expected to receive an extension of one more financial year due to the emerging uncertainty of variant omicron.
It has been successful in providing liquidity support to more than 10 million enterprises, protecting about 54.5 million jobs, as published in Mint.
A government official told the media house that, the extension of ECLGS with certain modifications is under consideration, and an announcement to this effect is possible in the budget as a corpus of about INR 1.6 trillion is still available under the scheme.
Under the INR 20 trillion economic stimulus package Atmanirbhar Bharat Abhiyan’, ECLGS is one of the key components of it which was announced in May last year that offers additional working capital finance in the form of a term loan to MSMEs and professionals.
The amount given under this scheme in the beginning was INR 3 trillion, which was raised to INR 4.5 trillion in June after the second covid wave when finance minister Nirmala Sitharaman announced a fourth stimulus package worth INR 6.29 trillion.
India had to face huge impact of the first as well as the second wave which was devastating for the economy and significant for the MSMEs.
Hence, there’s a major prospect of extending the Emergency Credit Line Guarantee Scheme.
