The Narendra Modi government on Thursday announced operational guidelines for the Emergency Credit Line Guarantee Scheme (ECLGS) 2.0 for 26 stressed sectors and healthcare. The new scheme has been expanded to cover borrowers with loans of up to Rs 500 crore and the annual turnover ceiling has been removed.
Speaking to CNBC-TV18, State Bank of India (SBI) Managing Director CS Setty who advised the government on the scheme, said that National Credit Guarantee Trustee Company (NCGTC) providing guarantee for non-funded exposure for first time is one of the key changes.
“One important thing so far is that NCGTC, the guarantee provider, first time is providing guarantee for the non-funded exposures because among the 26 sectors which are identified, one of them was construction sector and it was thought that for them the bank guarantee facility would be more important than the fund based facility. So, that is I think in my view one of the most important modification which they have done,” he said.
Setty said that ECLGS 1.0 cannot be called as unsuccessful. “1.5 lakh crore disbursed in one go; I think that has been an immense success in my view. As a lender I believe that timely if facility has been made available, whatever tweaking we have requested was in terms of implementation issues need not be there. That is the reason a bit of tweaking is done,” he said.Watch video for more