The Emergency Credit Line Guarantee Scheme has saved almost 13.5 lakh MSMEs worth Rs 1.8 lakh crore from slipping into NPA, according to a recent report published by SBI. This scheme was launched in May, 2020 to provide relief to the MSME sector and since then the Government has extended the scheme to cover various industries, and the latest findings indicate how effectively a well thought-out scheme can come to the rescue of a sector in times of need.

As per the research report, at least 13.5 lakh MSMEs accounts were saved due to ECLG scheme (including the 2 lakh restructured accounts eligible for ECLG credit), and a deeper look into the report shows that in absolute terms, MSME loan accounts worth Rs 1.8 lakh crore (including Rs 12,000 crore of restructured) have improved during the period. This means that around 14% of the outstanding MSME credit (including 2% of restructured) has been saved from slipping into NPA because of the ECLG scheme.

The report adds that of 13.5 lakh MSMEs accounts that are saved due to ECLG scheme, almost 93.7% are Micro and Small enterprises while 48% belong to the Micro category and nearly same 46% are the Small borrowers. The rest 6% belong to the Medium category. Also, as per the analysis, if such units slipped into NPA, then 1.5 crore workers would have become unemployed. So, the scheme has saved millions of jobs as well.

Another initiative that seems to be doing well is the One District One Product scheme, which is operationally merged with ‘Districts as Export Hub’ initiative of the DGFT. According to latest reports, the e-commerce platform that deals in indigenous and specialised products made in Uttar Pradesh has witnessed a 52% quarterly growth in revenue for the state's ODOP products in 2020-2021. Other state governments should also seek for ways and means of making best of this scheme.

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