Govt extends ECLGS deadline till March

New Delhi: The Finance Ministry on Wednesday expanded the scope of the Rs4.5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) to support micro, small and medium enterprises facing liquidity issues due to the Covid-19 pandemic.

The validity of the scheme has been extended by another six months till March 31, 2022, the ministry said in a statement.

The government has been receiving demands from various industry bodies and other stakeholders to extend the scheme to ensure continued support to eligible sectors/businesses, it added.

"With a view to support various businesses impacted by the second wave of Covid-19 pandemic, it has been decided to extend the timeline of ECLGS till March 31, 2022, or till guarantees for an amount of Rs 4.5 lakh crore are issued under the scheme, whichever is earlier," the ministry said. Further, it said, the last date of disbursement under the scheme has also been extended to June 30, 2022.

The modifications have been made in the scheme to enable support to businesses impacted by the second wave of Covid, it said, adding existing borrowers under ECLGS 1.0 and 2.0 would be eligible for additional credit support of up to 10 per cent of total credit outstanding as of February 29, 2020, or March 31, 2021, whichever is higher.

Businesses who have not availed assistance under ECLGS (ECLGS 1.0 or 2.0), can avail credit support of up to 30 per cent of their credit outstanding as of March 31, 2021, it said.

Businesses in sectors specified under ECLGS 3.0, who have previously not availed ECLGS, can avail credit support of up to 40 per cent of their credit outstanding as of March 31, 2021, to the maximum of Rs 200 crore per borrower.