Extension of ECLGS scheme for Covid hit MSMEs unlikely

New Delhi, Mar 17 (KNN) The central government is not in the favour to continue with the Emergency Credit Line Guarantee Scheme (ECLGS) further than March 31, 2023, reported CNBC-TV18.

There is no emergency in any of the sectors covered under the ECLGS so there is no logic for another extension and utility of the scheme has passed with the economy recovering, officials told CNBC-TV18.

During the Covid-19 lockdown in May 2020 an emergency line of credit of Rs 3 lakh crore was announced especially for the MSMEs to address the Covid-led business disruptions.

However, the final and formal decision to not extend the ECLGS is yet to be taken.

Demanding another extension the MSME Ministry has placed contrary demands stating that there is ample headroom still available under the scheme.

As on January 1, 2023, guarantees amounting to Rs 3.61 lakh crore have been issued under the ECLGS, benefiting 1.19 crore borrowers, the government had stated in parliament.  (KNN Bureau)