Finance Minister Nirmala Sitharaman announced on Tuesday that the Emergency Credit Line Guarantee Scheme (ECLGS), which provided much-needed supplementary credit to over 1.3 crore MSMEs, will be extended until March 2023, with its guarantee cover increased by Rs 50,000 crore to Rs 5 lakh crore.
The increased funds will be used solely to assist the hospitality and related industries in returning to pre-pandemic levels.
The Finance Minister said the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) plan will be rebuilt with the necessary infusion of cash when presenting the Budget 2022-23 to Parliament.
”This will facilitate additional credit of Rs 2 lakh crore for micro and small enterprises and expand employment opportunities,” she said.
To help the micro, small and medium enterprises (MSME) sector become more resilient, competitive and efficient, Sitharaman said a Raising and Accelerating MSME Performance (RAMP) programme will be rolled out with a Rs 6,000 crore outlay spread over 5 years.
”Hospitality and related services, especially those by micro and small enterprises, are yet to regain their pre-pandemic level of business.
Considering these aspects, the ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by Rs 50,000 crore to a total cover of Rs 5 lakh crore with the additional amount being earmarked exclusively for hospitality and related sectors,” the Finance Minister said.