NE BUSINESS BUREAU
NEW DELHI, JUNE 12
The Finance Ministry on Friday said public sector banks have disbursed Rs 14,690.84 crore till June 11, under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, hit hard by the coronavirus-induced lockdown.
Public sector banks (PSBs) have sanctioned loans worth Rs 29,490.81 crore under the 100 percent ECLGS for the Micro, Small & Medium Enterprises (MSME) sector starting June 1.
The scheme is the biggest fiscal component of the Rs 20-lakh crore Atmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman last month.
4. To help taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of application for revocation of cancellation of registration up to Sept 30, 2020, where registrations have been cancelled till June 12, 2020.
— Nirmala Sitharaman Office (@nsitharamanoffc) June 12, 2020
“As of 11 June 2020, #PSBs have sanctioned loans worth Rs 29,490.81 crore under the 100% Emergency Credit Line Guarantee Scheme, out of which Rs 14,690.84 crore has already been disbursed,” Sitharaman said in a tweet.
On May 21, the Cabinet had approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25 percent through ECLGS for the MSME sector.
Finance Minister @nsitharaman chairs 40th @GST_Council
meeting; recommendations on Law & Procedures changes made
Further relief for small taxpayers (aggregate turnover upto Rs. 5 cr) for late filing of returns for February-April 2020 Tax periods pic.twitter.com/WLYxJu6w1t— DD News (@DDNewslive) June 12, 2020
Under the scheme, 100 percent guarantee coverage will be provided by National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency (MUDRA) borrowers in the form of a guaranteed emergency credit line (GECL) facility.
For this purpose, a corpus of Rs 41,600 crore was provided by the government, spread over the current and next three financial years.
The scheme will be applicable to all loans sanctioned under the GECL facility during the period from the date of announcement of the plan to October 31 or till an amount of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier.
The main objective of the scheme is to provide an incentive to member lending institutions to increase access and enable the availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis, by giving them 100 percent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.
All MSME borrower accounts with an outstanding credit of up to Rs 25 crore as on February 29, which were less than or equal to 60 days past due as on that date, ie, regular, SMA-0 and SMA-1 accounts, and with an annual turnover of up to Rs 100 crore, would be eligible for GECL funding under the scheme.
