The expansion of the Emergency Credit Line Guarantee Scheme (ECLGS) announced by the government on May 30, will help companies in sectors such as civil aviation, hotels and tour operators, where demand has been severely affected by the intense second wave of the Covid-19 pandemic, Crisil said on Wednesday.
The scheme will also support build-up of healthcare infrastructure, mainly oxygen availability, in Tier 2 and beyond cities, and the hinterland.
The scope of the scheme, first announced on May 13, 2020, has been continuously expanded. The latest version will be valid up to September 30, 2021, or till the unutilised amount of INR 3 lakh crore is exhausted, whichever is earlier.
More sectors have been brought under the scheme’s ambit, some eligibility criteria relaxed, and micro, small and medium enterprises (MSMEs) have been allowed to avail of loans for longer tenures. The scheme has sanctioned INR 2.54 lakh crore of loans under the previous three versions, as of mid-May.