Bengaluru, July 14 (KNN) In order to ensure the compliance of the credit guarantee scheme by financial institutions and make them reach to Micro, Small and Medium Enterprises (MSME) sector, the department of MSME in Karnataka has set up a Helpline number.

''The dedicated helpline will provide information to the beneficiaries on the scheme, guide them and handle the grievances and feedback related to the ECGS scheme,'' said Department of Commerce and Industries, Karnataka government in a circular dated July 13, 2020.

''The helpline will also work as an interface and connect to the concerned banks for grievance redressal and info sharing, if needed on a case to case basis,'' the circular further read.

It also asked all Joint Directors of DICs to popularise the Helpline number— 080-2309 0500— with all the industrialists so that they can make optimum use of this number.

The ECGL schemed has been formulated by the government as a specific response to the unprecedented situation caused by COVID-19 and the consequent lockdown, which has severely impacted manufacturing and other activities in the MSME sector.

In view of the critical role of the MSME sector in the economy and in providing employment, the proposed scheme is expected to provide much needed relief to the sector by incentivizing MLIs to provide additional credit of up to Rs 3 lakh crore to the sector at low cost, thereby enabling MSMEs to meet their operational liabilities and restart their businesses.