The government is likely to increase the limit of the Emergency Credit Line Guarantee Scheme (ECLGS) from the current Rs 3 lakh crore. The limit could be raised due to the expansion of the scheme.
Along with the increase in limit, the corpus of government guarantee is also likely to go up. Last May, the Cabinet had given its nod to around Rs 41,600 crore government guarantees under the ECLGS.
The government is now likely to seek a Cabinet nod to increase the limit.
Also Read: Govt open to increasing ECLGS headroom depending on demand: DFS Secy
Earlier, the scope of the scheme was expanded to include healthcare and aviation. The validity of the scheme too was extended to September 30.
The Department of Financial Services (DFS) Secretary Debasish Panda recently told CNBC-TV18 that the government is open to raising the limit.
Announced as part of the government's Rs 20.97 lakh crore-economic package in the wake of the coronavirus pandemic, the scheme was later tweaked to be made applicable for companies with an annual turnover of Rs 250 crore as against the earlier threshold of Rs 100 crore.Watch the video for more details