New Delhi, Aug 17 (KNN) The hospitality and related sectors- worst hit during Covid pandemic, have been extended further relief with Cabinet clearing infusion of Rs. 50,000 crore in ongoing Emergency Credit Line Guarantee Scheme (ECLGS).

The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved the enhancement in the limit of ECLGS scheme from Rs. 4.5 Lakh crore to Rs. 5 Lakh crore.

The additional amount of Rs. 50,000 crore is earmarked exclusively for enterprises in hospitality and related sectors till validity of the scheme which is 31.3.2023. 

Restaurants had been hit severely with prolonged lockdowns and later Covid restrictions.  

Federation of Indian Micro and Small & Medium Enterprises (FISME)- the national MSME federation has welcomed the move.

“ECLGS has been a hugely successful scheme and more than one crore MSMEs have already benefitted from Rs. 3.67 lac crore disbursed through the scheme. Providing for additional Rs. 50,000 crore more for worst hit sectors like hospitality is greatly welcomed”,  remarked Prashant Patel, President of  FISME. 

The enhancement of ECLGS guarantee will incentivize lending institutions to provide additional credit of up to Rs. 50,000 crore at low cost funds to MSMEs to meet their operational liabilities and re-establish their businesses.

(KNN Bureau)