Question
Recently Union Finance Ministry allowed which sector to
avail of up to Rs 1,500 crore loan under the Emergency Credit Line Guarantee Scheme (ECLGS)?Solution
The Union Finance Ministry allowed airlines to avail of up to Rs 1,500 crore loan under the Emergency Credit Line Guarantee Scheme (ECLGS), to help them tide over their cash flow problems. Earlier, an airline could avail of a loan of not more than Rs 400 crore under the ECLGS. The Centre had in 2020 started the ECLGS to provide collateral-free and government-guaranteed loans to businesses affected by the Covid pandemic. 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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