The government extends the scope and validity of the Eclgs until March 31, 2023

The scope and validity of the Emergency Credit Line Guarantee Scheme (ECLGS) has been extended until March 31, 2023, Finance Minister Nirmala Sitharaman said.

The government has extended relief for hospitality, civil aviation and related businesses under the ECLGS.

The government has also increased additional credit support from 40% of fund-based credit outstanding to 50% of fund-based and non-fund-based credit outstanding under ECLGS 3.0, said the Minister of Finance.

Eligible borrowers in the civil aviation sector are now eligible for non-fund-based emergency credit facilities, Sitharaman added.

While presenting her fourth budget on February 1, 2022 for the financial year 2022-23, Finance Minister Nirmala Sitharaman had said that the guarantee coverage for the ECLGS would be extended from Rs 50,000 crore to a total of Rs 5 lakh crore.

The ECLGS was launched by the government as part of its Rs 20 lakh crore comprehensive package, which was announced by the Ministry of Finance on May 13, 2020.

The economic study had indicated that till November 19, 2021, a total amount of Rs 2.28 lakh crore had been disbursed to 95.2 lakh borrowers, affecting 5.45 crore of employees.

“I don’t see this emergency credit borrowing initiative being a great support; it’s just enough to soften the blow to support salaries but the major development cost, which is going to be at least Rs 3,000-4,000 crore is still a gap,” Martin previously told CNBC-TV18 in an interview.


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