#Budget2022: ECLGS to be extended till March 2023, says Sitharaman
The Emergency Credit Line Guarantee Scheme (ECLGS) will be extended till March 2023, Union Finance Minister Nirmala Sitharaman announced on Tuesday. The scheme's cover will also be raised by Rs. 50,000 crore to Rs. 5 lakh crore, Sitharaman said. An additional amount will also be set aside for hospitality. She made the announcement during her Budget speech for the financial year 2022-23.
Why does this story matter?
The ECLGS is aimed at supporting micro, small, and medium enterprises (MSMEs) and has benefited over 1.15 crore such businesses since its launch in May last year. The extension comes after calls from industry bodies and stakeholders regarding the same. Last year, the validity of ECLGS had been extended by six months till March 31, 2022.
CGTMSE to be revamped
Further, Sitharaman proposed the revamping of the credit guarantee trust for micro small enterprises scheme (CGTMSE) with required infusion funds. "This will facilitate additional credit of Rs. 2 lakh crore for MSEs and expand employment opportunities," she said.
ECLGS was launched in wake of COVID-19 disruptions
ECLGS was first launched last May with the aim to benefit MSMEs amid disruptions due to the COVID-19 pandemic. In September, the government had announced the scheme would be extended till March 31 or until the Rs. 4.5 lakh crore amount is utilized, whichever is earlier. ECLGS was notably among the components of the government's Rs. 20,000 crore economic package the Atmanirbhar Bharat Abhiyan.
