The size of the guaranteed credit scheme can grow up to Rs 5 lakhs.

0
45

[ad_1]

NEW DELHI: Amid growing chatter about new incentives, the government intends to increase the Emergency Credit Guarantee Scheme (ECLGS) to Rs 5 lakh crores from the current Rs 3 million, while expanding its coverage to include hospitals.
The move represents ECLGS lending sanctions near the 3 lakh crore mark after the government allowed funds to be used by a variety of other sectors instead of limiting them to micro, small and medium-sized enterprises, the original target group.
In addition, sources told TOI that hospitals – both new and old – will also be covered by the scheme, as the government hopes to expand healthcare infrastructure across the country. In these cases, the maximum allowable loan amount would be Rs 100 crore and would be applicable to facilities in non-metro cities, sources said.

In the case of projects from zero to 75% of funding will be guaranteed National Credit Guarantee Companyand 50% of the loans will be covered by the expansion of existing facilities.
Separately Reserve Bank of India also announced a “liquidity window” to help the health sector.
Sources said the Treasury Department is in the process of obtaining the permits needed to expand the scheme and is expected to be given the authority to take further action in the coming months.
The government believes that the safeguards approach is a cost-effective tool to support “viable” enterprises without prohibitive financial costs.
Amid growing demands for new incentives last month, Treasury Secretary Nirmala Sitharaman told TOI that there is scope under existing schemes to meet higher government support requirements as Budget the measures were also not fully implemented.
In addition, the government believes that it is the poor who need the most support at this time, given that their livelihoods and savings have been severely affected.
Government sources have pointed to a variety of schemes – whether it is free grain or an expedited settlement of claims under the prime minister. Yang Dhan Yojana without requiring a death certificate from the municipal authority. Even 55 lakh rupees for frontline workers is increasing with delays believed to be related to candidate tracking.
While industry lobbying groups have demanded a variety of concessions and incentives, including printing money, the government believes it has enough weapons in its arsenal to stimulate demand.
Sitharaman regularly interacts with government departments and public sector companies to increase capital expenditures in order to increase demand for sectors such as steel and cement, as well as to create jobs.



[ad_2]

Source link