NEW DELHI: Finance Minister Niramala Sitharaman announced on Thursday an Emergency Credit Line 2.0 Guarantee (ECGLS) scheme for 26 stressed sectors, including energy, construction, real estate, iron and steel manufacturing.
Identified by the KV Kamath committee, the entities of these 26 sectors, as well as the health sector, have outstanding credits of more than ₹50 crore and up ₹500 crore as of February 29, 2020.
The entities will obtain an additional credit of up to 20% of the outstanding credit, while the repayment can be made within a period of five years, which will include a one-year moratorium and a four-year repayment period.
“ECLGS 2.0 will provide much-needed relief to stressed industries by helping entities maintain employment and meet responsibilities. It will also benefit the MSME sector, which provides goods and services to eligible entities, “said Sitharaman, announcing measures to boost economic growth. The scheme will be available until March 31, 2021.
“The term of the additional credit under ECLGS 2.0 will be 5 years, including a one-year moratorium on repayment of the principal,” he said.
The minister added that the emergency credit line guarantee scheme of the government-backed uncollateralized loan scheme (ECLGS) for small businesses, commercial enterprises, individual loans for commercial purposes, MUDRA borrowers, will run until March 31. .
So far, lenders have penalized ₹2.05 trillion in loans, of which ₹1.52 trillion have been disbursed.
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