NE BUSINESS BUREAU
NEW DELHI, MARCH 31
The National Credit Guarantee Trustee Company Limited (NCGTC) on Wednesday extended the Emergency Credit Line Guarantee Scheme (ECLGS) beyond March 2022, till March 2023. This has been done following Union Finance Minister Nirmala Sitharaman’s announcement in Union Budget 2022-23
The Finance Ministry had expanded the scope of the Rs 5-lakh crore ECLGS to support MSMEs engaged in travel, tourism and hospitality sectors to overcome the impact of the COVID-19 pandemic impact. As per the latest modification, new borrowers in the sectors covered under ECLGS 3.0, who have borrowed between March 31, 2021, and January 31, 2022, will now be eligible to avail the credit facilities.
The credit limit for eligible borrowers has been increased to 50 percent of their fund-based credit outstanding (up from 40 per cent). The enhanced limit is subject to a maximum of Rs 200 crore per borrower.
Keeping in view the high proportion of non-fund based credit in the overall credit of the civil aviation sector, the ministry said eligible borrowers in the civil aviation sector are now permitted avail of non-fund based emergency credit facilities as well under ECLGS 3.0.
SpiceJet Chairman and Managing Director Ajay Singh welcomes FM’s move
SpiceJet Chairman and Managing Director Ajay Singh on Thursday issued a statement welcoming the modifications that the Centre has introduced in the Emergency Credit Line Guarantee Scheme (ECLGS).
“We had requested the Finance Minister to enhance the scope of ECLGS for the struggling aviation and hospitality sectors. We are very grateful that she has responded positively and quickly. This move will provide some relief and liquidity for these sectors that have been worst hit by the three waves of the pandemic,” he said.
