The government on Wednesday extended the Rs 3 lakh-crore emergency credit line guarantee scheme for three months till June 30 as well as expanding its scope in new areas including hospitality, travel and tourism.
The Finance Ministry said in a statement that ECLGS 3.0 will cover up to 40% of the total debt outstanding in all lending institutions.
The tenure of loan granted under ECLGS 3.0 will be 6 years, including the moratorium period of 2 years.
“In recognition of the continued adverse impact of the COVID-19 epidemic on some service sectors, the government has now expanded the scope of ECLGS through the introduction of ECLGS 3.0 to cover business ventures in the hospitality, travel and tourism, leisure and sports sectors. , Which was, as on 29 February 2020, the total debt does not exceed ₹ 500 crore and there were arrears for a period of 60 days or less, if any, on that date.
In addition, the validity of ECLGS – ECLGS 1.0, ECLGS 2.0 and ECLGS 3.0 has been extended till June 30, 2021 or guarantees are issued for an amount of ₹ 3 lakh crore, the ministry said. The last date of disbursement under the scheme has been extended to 30 September.
The scheme was valid until October 2020 and was extended to the end of November. The scheme was expanded again in November to 31 March 2021 as part of the Atmanabir Bharat 3.0 package, covering 26 stressed areas identified by the KV Kamath Committee constituted by the RBI.
“The amendments introduced in the scheme will go a long way in creating an environment conducive to economic revival, protection of jobs, and job creation while providing incentives to member lending institutions to enable the availability of additional financing facility to eligible beneficiaries” The statement said.
The revised operational guidelines will be issued by the National Credit Guarantee Trustee Company Limited (NCGTC).
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