ECLGS For MSMEs Extended To March 2023, Additional Cover For Hospitality Players
New Delhi, Feb 1: Continuing support to the MSME sector, Budget 2022 has proposed to extend the emergency credit guarantee scheme ECLGS to March 2023 and its guarantee cover will be expanded by Rs. 50,000 crore to total cover of Rs. 5 lakh crore.
Emergency Credit Line Guarantee Scheme (ECLGS) has provided much-needed additional credit to more than 130 lakh MSMEs. Brought in the wake of pandemic, the scheme has helped them mitigate the adverse impact of the pandemic.
“The hospitality and related services, especially those by micro and small enterprises, are yet to regain their pre-pandemic level of business. Considering these aspects, the ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by Rs. 50,000 crore to total cover of Rs. 5 lakh crore, with the additional amount being earmarked exclusively for the hospitality and related enterprises,” Finance Minister Nirmala Sitharaman said while presenting Union Budget 2022 in Lok Sabha on Tuesday.
Reacting to the Budget announcement, Kush Kapoor, CEO , Roseate Hotels and Resorts said that extension of ECLGS moratorium extension by one year for the hospitality sector will come as a breather for the hotel players grappling with burden of loan repayment and uncertainties in revenue generation.
Further, Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with required infusion of funds.
“This will facilitate additional credit of Rs 2 lakh crore for Micro and Small Enterprises and expand employment opportunities,” Sitharaman said.
Announcing that Raising and Accelerating MSME Performance (RAMP) program with outlay of Rs. 6,000 crore over 5 years will be rolled out, Sitharaman said that the move would help the MSME sector become more resilient, competitive and efficient.
