New Delhi, Jan 11 (KNN) It is likely that the central government will give a one year extension to the emergency credit line guarantee scheme (ECLGS) for micro, small and medium enterprises (MSME).

With this probable move the end date will be shifted to March 2024, according to government sources, reported New Indian Express.

This announcement will be a part of the union budget of 2023-24 which will be presented by Union Finance Minister Nirmala Sitharaman on February 1, 2023.

“The government may extend ECLGS by one more year, so that the unutilised amount can be used by MSMEs that need the credit. The minister may announce the extension while presenting Union Budget 2023-24,” the source told New Indian Express.

As an economic help for MSMEs in financial distress caused by Covid pandemic, the scheme was first time launched in March 2020 as part of the Aatma Nirbhar Bharat package.

Since then the ministry has expanded the scope of this scheme, and had extended it till March 2023.

Under the scheme, the government guarantees 100 per cent of the loans given to MSMEs in case loan becomes NPA.  (KNN Bureau)