The industry welcomed the expansion of ECLGS amid the Covid crisis
New Delhi, May 30 (SocialNews.XYZ) As the Center on Sunday announced the expansion of the Emergency Credit Line Guarantee Scheme (ECLGS), industry participants praised the move and said it would support many businesses amid the second wave of Covid-19.
FICCI President Uday Shankar said the respite announced under the scheme will serve MSMEs well.
“The relaxations have been announced under ECLGS 1.0 both in terms of extending the repayment period as well as the offer of an additional 10 per cent loan that will serve MSMEs well. The removal of the 500 crore cap for eligibility under ECLGS 3.0 and inclusion of civil aviation is also welcome the sector, ”he said.
Noting that the new ECLGS 4.0 scheme provides financial support to the critical healthcare sector, Uday Shankar said: “We expect banks to emerge in providing loans in a fast and timely manner.”
He said it was necessary to strengthen health infrastructures in the country in the next few months to prepare well for any coming waves.
In announcements made by the State Bank of India and Indian Banks ’Association (IBA), the head of FICCI said:“ We welcome the steps taken by the banking fraternity to support the industry, especially the MSME sector, at the time of this crisis. the second Covid-19 wave was devastating for a large number of businesses and it is only fitting for the banking sector to step forward and announce these measures. “
Commenting on the inclusion of the civil aviation sector among ECLGS beneficiaries, SpiceJet Chairman and Managing Director Ajay Singh said it was a timely move and should help the sector most severely affected by the Covid-19 pandemic.
“Around the world, we have seen governments bail out their airlines many times over the past one year. Indian Airlines is leading this war against Covid and the government’s recognition of the difficulties facing our industry is definitely moving in the right direction, “he said.