Window of credit line guarantee scheme opens for hospitals and aviation sector
NEW DELHI: In what could be termed as the unveiling of a fresh round of its economic relief package, the government on Sunday expanded the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) to more sectors disrupted by the second wave of the pandemic. It will now cover medical colleges, hospitals, nursing homes and the aviation sector.
The ministry of finance also extended the validity of the scheme from June 30 to September 30, or till guarantees for an amount of Rs 3 lakh crore has been issued. Disbursement under the scheme is permitted up to December 31, 2021.
The scheme announced in May 2020 aimed at giving up to Rs 3 lakh crore unsecured loans to MSME and other sectors severely impacted by the COVID-19 pandemic. The government provides guarantee against loans disbursed under the scheme. Earlier, the scheme covered MSMEs, hospitality, travel and tourism, leisure and sporting sectors, and 26 stressed sectors identified by the KV Kamath Committee.
The government has now allowed hospitals, nursing homes, clinics and medical colleges to avail loan up to Rs 2 crore for setting up of on-site oxygen plants under ECLGS 4.0. The loan would be 100 per cent guaranteed by the government. The interest rate on such loans has been capped at 7.5 per cent.
The tenure of working capital loans provided to MSMEs under ECLGS 1.0 has been extended from four years to five years. Earlier, a moratorium of one year was given on principal repayment. Now it has been extended by a year. So MSMEs, which have availed loans under the scheme can now pay only the interest amount in the first two years and the rest of the interest and principal in the next three years.
Those MSMEs covered under ECLGS 1.0 can now avail additional loan up to 10% of the outstanding amount as on February 29, 2020. Earlier, they could avail loan up to 20% of their debt outstanding as on February 29, 2020.
The existing limit of Rs 500 crore debt outstanding under ECLGS 3.0, which is for businesses from hospitality, travel and tourism, leisure and sporting sectors, has been removed. However, the additional loan that can be availed has been limited to 40% (of debt outstanding) or Rs 200 crore, whichever is lower.
Aviation has been included in the list of eligible sectors under ECLGS 3.0. Under ECLGS 2.0, 26 distressed sectors were eligible for a maximum of 20 per cent of the debt outstanding as on February 29, 2020.
Meanwhile, Indian Banking Association Chief Executive Officer Sunil Mehta said so far Rs 2.55 lakh crore has been sanctioned under the ECLGS scheme, of which Rs 2.4 lakh crore has been disbursed.
Social security net for next of kin of workers succumbing to COVID
NEW DELHI: All dependent family members of insured persons under the ESIC who succumb to Covid, will be entitled to receive the same level of benefits as is given for death due to employment injury, the labour ministry said