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Delivering the Union Budget 2022-23, Finance Minister Nirmala Sitharaman announced the extension of ECLGS up to March 2023.
The Emergency Credit Line Guarantee Scheme (ECLGS) was announced to help MSMEs cope up with pandemic losses and was extended up to March 31, 2022 previously.
“ECLGs has provided the much-needed additional support to more than 130 lakh MSMEs helping them mitigate the worst effects of pandemic. The hospitality and related services especially for MSMEs are yet to regain pre-pandemic level. Considering these aspects, the ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by Rs 50,000 crore to total cover of Rs 5 lakh crore,” Sitharaman said.
She added that the additional amount being earmarked exclusively for the hospitality related sector.
She also said that the credit guarantee trust for micro small enterprises scheme (CGTMSE)will be revamped with required infusion of funds. “This will facilitate additional credit of Rs 2 lakh crore for MSEs and expand employment opportunities,” she said.
Talking about Budget 2022, Nitin Potdar, Partner, J Sagar Associates (JSA) said, “Extension of Emergency Credit Line Scheme till 2023 up to is welcome step but not enough at all. SMEs n MSMEs expected one time waiver or at least moratorium of loans or interest like big industries. SMEs & MSMEs would certainly feel disappointed as they have been struggling for financial support during pandemic.”
The Emergency Credit Line Guarantee Scheme (ECLGS) was announced to help MSMEs cope up with pandemic losses and was extended up to March 31, 2022 previously.
“ECLGs has provided the much-needed additional support to more than 130 lakh MSMEs helping them mitigate the worst effects of pandemic. The hospitality and related services especially for MSMEs are yet to regain pre-pandemic level. Considering these aspects, the ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by Rs 50,000 crore to total cover of Rs 5 lakh crore,” Sitharaman said.
She added that the additional amount being earmarked exclusively for the hospitality related sector.
She also said that the credit guarantee trust for micro small enterprises scheme (CGTMSE)will be revamped with required infusion of funds. “This will facilitate additional credit of Rs 2 lakh crore for MSEs and expand employment opportunities,” she said.
Talking about Budget 2022, Nitin Potdar, Partner, J Sagar Associates (JSA) said, “Extension of Emergency Credit Line Scheme till 2023 up to is welcome step but not enough at all. SMEs n MSMEs expected one time waiver or at least moratorium of loans or interest like big industries. SMEs & MSMEs would certainly feel disappointed as they have been struggling for financial support during pandemic.”
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