Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!
you are here: HomeNewsBusiness

Govt extends ECLGS scheme for MSMEs until March 2023; hospitality, aviation to get boost

The National Credit Guarantee Trustee Co has also increased the limit for borrowing under the third iteration of the ECLGS.

March 30, 2022 / 07:00 PM IST

The Emergency Credit Line Guarantee Scheme (ECLGS) that helped micro, small and medium enterprises get access to additional credit during the outbreak of the COVID-19 pandemic has been extended till March 2023 and its guarantee cover expanded by Rs 50,000 crore to Rs 5 lakh crore, the government said in a press release today.

Finance Minister Nirmala Sitharaman while presenting the Union Budget for 2022-23 had announced the extension of the ECLGS till March 2023 and had also said that the additional amount will be exclusively earmarked for the hospitality and related segments to help them recover from the aftermath of the COVID-19 pandemic.

As part of the new operational guidelines for ECLGS 3.0, new borrowers from the hospitality, travel, tourism, and civil aviation sectors who have borrowed after March 31, 2021, and up to January 31, 2022, will also now be eligible to avail of emergency credit facilities under ECLGS 3.0.

The National Credit Guarantee Trustee Co has also increased the limit for borrowing under the third iteration of the ECLGS.

The government has set January 31, 2022, as the reference date for companies to avail of credit as part of the extended ECLGS scheme.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

Companies in the hospitality, travel and tourism industry can now borrow up to 50 percent of their highest fund-based credit outstanding, as against 40 percent of their credit outstanding as part of ECLGS 1.0 and ECLGS 2.0, the government said in the statement.

However, the cap on maximum borrowing by a single MSME from the hospitality, travel and tourism industry still stands at Rs 200 crore.

Similarly, companies in the civil aviation industry can now borrow up to 50 percent of their highest fund-based credit outstanding, as against 40 percent of their credit outstanding as part of earlier iterations of the ECLGS scheme.

The cap on maximum borrowing by a single MSME from the aviation industry has been increased to Rs 400 crore from Rs 200 crore earlier.

Under the ECLGS, banks provide additional loans to existing borrowers without asking for extra collateral to help them cope with the liquidity crunch resulting from COVID curbs. These loans are also fully guaranteed by the government against credit losses.

As on March 25, 2022, loans sanctioned under ECLGS have crossed Rs 3.19 lakh crore, and about 95 percent of the guarantees issued are for loans sanctioned to micro, small and medium enterprises.



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Moneycontrol News
Sections
ISO 27001 - BSI Assurance Mark