Govt extends ECLGS scheme for MSMEs till Mar 2023; thrust on hospitality

The Emergency Credit Line Guarantee Scheme (ECLGS) that provided much needed additional credit to over 1.3 crore MSMEs will be extended till March 2023 with its guarantee cover expanded by Rs 50,000 crore to Rs 5 lakh crore, Finance Minister Nirmala Sitharaman said on Tuesday.

The additional amount will be exclusively earmarked for the hospitality and related segments to help them recover to pre-pandemic levels.

Presenting the Budget 2022-23 in Parliament, the Finance Minister said the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with required infusion of funds.

"This will facilitate additional credit of Rs 2 lakh crore for micro and small enterprises and expand employment opportunities," she said.

To help the micro, small and medium enterprises (MSME) sector become more resilient, competitive and efficient, Sitharaman said a Raising and Accelerating MSME Performance (RAMP) programme will be rolled out with a Rs 6,000 crore outlay spread over 5 years.

"Hospitality and related services, especially those by micro and small enterprises, are yet to regain their pre-pandemic level of business. 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 a total cover of Rs 5 lakh crore with the additional amount being earmarked exclusively for hospitality and related sectors," the Finance Minister said.