Govt nods enhancing ECLGS limit to Rs 5 trn for hospitality, allied sectors

Union Cabinet has approved the enhancement in the limit of Emergency Credit Line Guarantee Scheme by Rs 50,000 crore Rs 5 Lakh crore, with the additional amount being earmarked entities in hospitality

The Union Cabinet on Wednesday approved a proposal to increase the limit of the Emergency Credit Line Guarantee Scheme (ECLGS) by Rs. 50,000 crore to Rs. 5 trillion. The additional amount is being earmarked for entities in hospitality and related sectors.  

According to the government statement, while other sectors recovered faster, demand continued to be subdued for hospitality and related sectors, requiring the need for suitable interventions for sustenance and recovery.

“With high immunization levels, progressive roll-back of restrictions and overall economic recovery, conditions are in place for sustained growth in demand for these sectors as well.  This additional guarantee