Industry hails expansion of ECLGS, more support to MSMEs

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SME Times News Bureau | 31 May, 2021
As the Centre on Sunday announced the expansion of the Emergency Credit Line Guarantee Scheme (ECLGS), industry participants have lauded the move and said it would support more businesses amid the second wave of Covid-19.

FICCI President Uday Shankar said that the relaxations announced under the scheme will serve the MSMEs well.

"Relaxations announced under ECLGS 1.0 both in terms of extension of period of repayment as well as offer of an additional 10 per cent loan will serve the MSMEs well. Removal of the Rs 500 crore cap for eligibility under ECLGS 3.0 and inclusion of the civil aviation sector are also welcome," he said.

Noting that the new scheme ECLGS 4.0 provides financial support to the critical healthcare sector, Uday Shankar said: "We hope that the banks will go all out in disbursing the loans in a quick and timely manner."

He noted that there is a need to ramp up the health infrastructure in the country over the next few months to prepare well for any future waves.

On the announcements made by the State Bank of India and Indian Banks' Association (IBA), the FICCI chief said: "We welcome the steps taken by the banking fraternity to support industry, particularly the MSME sector, during this hour of crisis. The second Covid-19 wave has been devastating for a large number of businesses and it was only appropriate for the banking sector to come forward and announce these measures."

Commenting on the inclusion of the civil aviation sector among the beneficiaries of ECLGS, SpiceJet Chairman and Managing Director, Ajay Singh, said that the it is a timely move and should help the sector that has been the most severely impacted by the Covid-19 pandemic.

"World over, we have seen governments come to the rescue of their airlines multiple times over the last one year. Airlines in Indian have been at the very forefront of this war against Covid and the government's recognition of the difficulties being faced by our industry is certainly a move in the right direction," he said.