The Government has taken a number of initiatives for providing financial assistance to the Micro, Small and Medium Enterprises (MSMEs) to cope with the financial impact of the COVID-19 pandemic, including access to working capital, stated Minister of State for MSME Bhanu Pratap Singh Verma.

These include the following Prime Minister’s Employment Generation Programme (PMEGP) - maximum project cost is Rs. 25 lakh, which includes capital expenditure and working capital.

He stated about Credit Guarantee Scheme (CGS) - maximum 85% guarantee is extended upto credit facility of Rs. 200 lakh, for both term loan and working capital. As per the Budget Announcement 2022-23, to facilitate an increased flow of credit, Rs. 2 lakh crore additional credit facility will be provided to Micro & Small Enterprises under this scheme.

Emergency Credit Line Guarantee Scheme (ECLGS) - announced as part of Aatma Nirbhar Bharat Package in May, 2020 to provide Collateral free Automatic Loans for businesses, including MSMEs.

Initially, the admissible limit of the guarantee was Rs. 3 lakh crore which was later enhanced to Rs. 4.5 lakh crore. As per the Budget Announcement 2022-23, the ECLGS is being extended up to March 2023 with an expanded guarantee cover of Rs. 5 lakh crore. The additional guarantee cover of Rs. 50,000 crore is earmarked exclusively for the hospitality and related enterprises.

This information was given by Bhanu Pratap Singh Verma in a written reply to the Rajya Sabha.