Eye on hospitality, Cabinet clears Rs 50K cr for ECLGS

The Centre has introduced elevating the allocation below the Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 50,000 crore to Rs 5 lakh crore. Information and Broadcasting Minister Anurag Singh Thakur introduced this resolution by the Cabinet on Wednesday, including that the extra quantity has been earmarked completely for enterprises in hospitality and associated sectors.

As per knowledge by the federal government and banks, loans of about Rs 3.67 lakh crore have been sanctioned below ECLGS until August 5, and Rs 2.54 lakh crore had been disbursed until April 30. The ECLGS was unveiled as a part of the excellent package deal introduced by the federal government in March 2020 to help the MSME sector in view of the financial misery attributable to the Covid pandemic and lockdowns.

The tourism sector was one of many worst hit, as folks postponed/cancelled their enterprise and leisure journey plans. Even because the sector noticed a spurt in demand as folks deliberate journeys, this demand couldn’t be sustained resulting from varied Covid waves in India in addition to throughout the globe.

Post the Omicron wave that hit India earlier this 12 months, journey demand has been wholesome and is about to proceed with the Centre saying resumption of worldwide flights from March-end.

The ECLGS credit score facility is probably going to assist the business fund its enlargement, as demand for journey continues to surge.

“With high immunisation 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 cover is expected to support the recovery of these sectors as well. This additional guarantee cover is expected to support the recovery of these sectors,” the Centre stated.