Question
Recently the Union Cabinet approved a proposal to
increase the limit of the Emergency Credit Line Guarantee Scheme (ECLGS) by Rs. _________ crore?Solution
The Union Cabinet approved a proposal to increase the limit of the Emergency Credit Line Guarantee Scheme (ECLGS) by Rs. 50,000 crore to Rs. 5 trillion from 4.5 trillion. The additional amount is being earmarked for entities in hospitality and related sectors for its recovery and growth alongside other sectors of the economy. This year’s budget had announced an extension of the ECLGS till March 2023, and expansion of the guarantee cover by Rs. 50,000. Loans of about Rs. 3.67 trillion have also been sanctioned under the scheme as of August 5, 2022. Learn Along: ECLGS was rolled out in May 2020 as part of the Centre’s Aatmanirbhar package in response to the Covid-19 crisis. The objective was to support small businesses struggling to meet their operational liabilities due to the imposition of a nationwide lockdown.
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