NEW DELHI: The government on Wednesday approved the enhancement in the limit of the Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 50,000 crore for the hospitality sector.
The overall allotment has been increased from Rs 4.5 lakh crore to Rs 5 lakh crore, with the additional amount being earmarked exclusively for the tourism and hospitality sector. The increase has been done on account of the severe disruptions caused by the COVID-19 pandemic on hospitality and related enterprises, Union Information and Broadcasting Minister Anurag Thakur said.
The additional amount would be made applicable to enterprises in hospitality and related sectors till March 31, 2023.
“The enhancement is expected to provide much-needed relief to enterprises in these sectors by incentivising lending institutions to provide additional credit of up to Rs 50,000 crore at low cost, thereby enabling these business enterprises to meet their operational liabilities and continue their businesses,” said the government in a statement.
About Rs 3.67 lakh crore amount of loans have already been sanctioned under the scheme till August 5, 2022, the statement said. “While other sectors were back faster on a recovery path, demand continued to be subdued for these sectors for a longer period, suggesting the need for suitable interventions for their sustenance and recovery.”
The government further said that given their high employment intensity and direct and indirect linkages with other sectors, their revival is also necessary for supporting overall economic recovery.