NEW DELHI: Union Cabinet has approved Emergency Credit Line Guarantee Scheme (ECLGS) valued R 50,000 crore for hospitality, travel and tourism sectors. Anurag Thakur, the Union Minister for Information and Broadcasting, said that the overall approved Emergency Credit Line Guarantee Scheme allotment has increased from Rs 4.5 lakh crore to Rs 5 lakh crore.
"The Cabinet authorised increasing the limit of the emergency credit line guarantee plan for the travel, tourist, and hospitality sector by Rs 50,000 crore," Thakur said. "For that, the excessive additional guarantee will be granted," he said. The central government will provide the funding, which would total Rs 7,500 crore for this year.
Till March 31, 2023, the additional amount has been set aside solely for the hospitality industry. As of August 5, loans of around Rs 3.67 lakh crore have been approved under the ECLGS, a continuous programme put in place to address the COVID-19 crisis.
To combat the substantial disruptions brought on by the coronavirus epidemic, ECLGS allocation to the sector has been boosted. Besides this, the increased funding is intended to encourage lending institutions to extend low-cost credit of up to Rs 50,000 crore in order to help the sector pay its operational obligations.