New Delhi: Government will increase the guarantee on loans to businesses to Rs 4.5 lakh crore from the earlier limit of Rs 3 lakh crore, Finance Minister Nirmala Sitharaman said on Monday.
emergency credit line Guarantee Plan (ECLGS), launched last year, has helped cash-strapped small businesses raise funds during the COVID-19 pandemic lockdown for working capital and fulfill their orders.
The Finance Minister said that the government will give the benefit of the free food grains program for poor people launched till November last year, which will cost Rs 93,870 crore, taking the total cost of the program to more than Rs 2.27 lakh crore.
The current limit of the ECLGS scheme, announced as part of the Rs 20 lakh crore Atmanirbhar Bharat Abhiyan package in May 2020, was Rs 3 lakh crore.
last month, Finance Ministry Expanded the scope of ECLGS to Rs 3 lakh crore by including concessional loans to hospitals for setting up of on-site oxygen generation plants.
In addition, the validity of the scheme was extended by three months till September 30 or issuance of guarantee of Rs 3 lakh crore.
The last date for disbursement under the scheme has been extended till December 31.
Meanwhile, India’s economic growth accelerated to 1.6% in January-March from a year ago, but economists are pessimistic about the quarter after a major second wave of Covid-19 infections hit the country in April-May.
(with inputs from agencies)
emergency credit line Guarantee Plan (ECLGS), launched last year, has helped cash-strapped small businesses raise funds during the COVID-19 pandemic lockdown for working capital and fulfill their orders.
The Finance Minister said that the government will give the benefit of the free food grains program for poor people launched till November last year, which will cost Rs 93,870 crore, taking the total cost of the program to more than Rs 2.27 lakh crore.
The current limit of the ECLGS scheme, announced as part of the Rs 20 lakh crore Atmanirbhar Bharat Abhiyan package in May 2020, was Rs 3 lakh crore.
last month, Finance Ministry Expanded the scope of ECLGS to Rs 3 lakh crore by including concessional loans to hospitals for setting up of on-site oxygen generation plants.
In addition, the validity of the scheme was extended by three months till September 30 or issuance of guarantee of Rs 3 lakh crore.
The last date for disbursement under the scheme has been extended till December 31.
Meanwhile, India’s economic growth accelerated to 1.6% in January-March from a year ago, but economists are pessimistic about the quarter after a major second wave of Covid-19 infections hit the country in April-May.
(with inputs from agencies)
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