Indian Cabinet clears ₹50,000-crore boost for hospitality sector

India’s Union Cabinet on Wednesday enhanced the corpus of sovereign-guaranteed credit facility for small enterprises, Emergency Credit Line Guarantee Scheme (ECLGS), from ₹4.5 lakh crore to ₹5 lakh crore, exclusively for the hospitality sector.

Union finance minister Nirmala Sitharaman in her Budget speech this year announced that the scheme for micro, small medium enterprises (MSMEs) will be extended by one year up to March 31, 2023 and the guaranteed cover would be expanded by ₹50,000 crore to a total of ₹5 lakh crore with the focus on sectors such as hospitality, HT reports.

“The Cabinet has approved the proposal to raise the limit of Emergency Credit Line Guarantee Scheme for travel, tourism and hospitality sector,” Union information and broadcasting minister Anurag Thakur said.

So far, loans of about ₹3.67 lakh crore have been sanctioned under ECLGS till August 5, 2022, according to the Union finance ministry.

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