Cabinet enhances ECLGS scheme for travel, hospitality sector by Rs 50,000 cr

The Union Cabinet has approved the enhancement in the limit of Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 50,000 crore to Rs 5 lakh crore, with the additional amount being earmarked exclusively for enterprises in hospitality and related sectors.

The increase has been done on account of the severe disruptions caused by COVID-19 pandemic on hospitality and related enterprises.

ECLGS is a continuing scheme. The additional amount of Rs 50,000 crore would be made applicable to enterprises in hospitality and related sectors till validity of the scheme which is 31 March 2023.

The enhancement is expected to provide much needed relief to enterprises in these sectors by incentivizing lending institutions to provide additional credit of up to Rs 50,000 crore at low cost, thereby enabling these business enterprises to meet their operational liabilities and continue their businesses.

Loans of about Rs 3.67 lakh crore have been sanctioned under ECLGS till 5 August 2022.

Powered by Capital Market - Live News