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Journalism of Courage
The Centre has announced raising the allocation under the Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 50,000 crore to Rs 5 lakh crore. Information and Broadcasting Minister Anurag Singh Thakur announced this decision by the Cabinet on Wednesday, adding that the additional amount has been earmarked exclusively for enterprises in hospitality and related sectors.
As per data by the government and banks, loans of about Rs 3.67 lakh crore have been sanctioned under ECLGS till August 5, and Rs 2.54 lakh crore had been disbursed till April 30. The ECLGS was unveiled as part of the comprehensive package announced by the government in March 2020 to aid the MSME sector in view of the economic distress caused by the Covid pandemic and lockdowns.
The tourism sector was one of the worst hit, as people postponed/cancelled their business and leisure travel plans. Even as the sector saw a spurt in demand as people planned trips, this demand could not be sustained due to various Covid waves in India as well as across the globe.
Post the Omicron wave that hit India earlier this year, travel demand has been healthy and is set to continue with the Centre announcing resumption of international flights from March-end.
The ECLGS credit facility is likely to help the industry fund its expansion, as demand for travel 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 said.
