Ashwini Vaishnaw,Information and Broadcasting Minister
“Additionally, this is expected to help businesses maintain their operations, protect jobs, and sustain supply chains. The proposed credit guarantee scheme is a major step to help businesses, particularly MSMEs and airline sector, to ensure their additional working capital needs are catered by the banks and financial institutions,”the government said
New Delhi: The government on Tuesday announced an Emergency Credit Line Guarantee Scheme (ECLGS) with an outlay of Rs 18,100 crore for MSMEs, airlines and other companies to help them meet working capital needs amid the challenges posed by the West Asia conflict.
The scheme — expected to help in providing additional credit flow of Rs 2.55 lakh crore, including Rs 5,000 crore — was approved by the Union Cabinet on Tuesday.
Briefing the media on the Cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said the scheme, having an outlay of Rs 18,100 crore, would help airlines as well as MSMEs impacted by the West Asia crisis.
“The scheme has been brought to address the stress in MSME and airline sectors due to the West Asia conflict,” he said.
In an official release, the government said the scheme aims to enable businesses to tide over the challenges arising from the West Asia conflict.
“Additionally, this is expected to help businesses maintain their operations, protect jobs, and sustain supply chains. The proposed credit guarantee scheme is a major step to help businesses, particularly MSMEs and airline sector, to ensure their additional working capital needs are catered by the banks and financial institutions,” it said.
By providing timely liquidity, the government said the scheme would sustain the businesses and prevent job losses. It will also promote uninterrupted domestic production and maintain the resilience of the ecosystem.
MSMEs (Micro, Small and Medium Enterprises) as well as airlines have been facing substantial financial headwinds due to the West Asia conflict that started in February.