Expansion of Emergency Credit Line Guarantee Scheme to Rs 5 lakh crore approved by the cabinet

Aug 17, 2022 03:44 pm

The Union Cabinet has approved the expansion of Emergency Credit Line Guarantee Scheme by Rs 50,000 crore to Rs 5 lakh crore, Information & Broadcasting Minister Anurag Thakur said on August 17.

The additional funds will be made available exclusively for the travel, tourism and hospitality sectors, the minister said.

The ECLGS scheme was launched in the wake of the pandemic to help small enterprises struggling in the wake of the unprecedented hit to economic activities. The scheme has since been expanded to include more sectors.

The Cabinet has also approved interest subvention of 1.5 percent per annum on short term agriculture loan up to Rs 3 lakhs in a bid to ensure adequate credit flow in agriculture sector.

This interest subvention will be provided to lending institutions and will entail an additional budgetary provision of Rs 34,846 crore, according to the government.

Farmers will continue receiving the interest subvention, or rebate, of 3 percent, as usual on eligible loans.

The interest support to lending institutions has been restored following the recent increase in policy interest rate by the Reserve Bank of India, minister Thakur said.

Separately, the cabinet also approved  widening access of the s0-called Traditional Knowledge Digital Library database to users besides patent offices.

Going ahead, researchers, patent applicants can now access the library, easing the process of research and development.

The decision will drive innovation based on India's valued research heritage across diverse fields and will lead to wider adoption of Indian traditional medicines, the government said.