ECLGS 4.0 to cover on site oxygen generation plants – News 24-7 Live News 24-7 Live
ECLGS 4.0 to cover on site oxygen generation plants

ECLGS 4.0 to cover on site oxygen generation plants

The government has expanded the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) on account of the disruptions caused by the second wave of COVID 19 pandemic to businesses across various sectors of the economy.

Under ECLGS 4.0, full guarantee cover will be provided for loans up to Rs 2 crore to hospitals, clinics and medical colleges for setting up on-site oxygen generation plants. “Interest rates capped at 7.5%,” the finance ministry noted in a statement.

Under the revamped scheme, eligible borrowers who had availed loans under ECLGS 1.0 will now be able to avail a tenure of five years for their ECLGS loan as against the earlier four year tenure, with repayment of interest only for the first 24 months and repayment of principal and interest in 36 months thereafter.

“The modifications in ECLGS, would enhance the utility and impact of ECLGS by providing additional support to MSMEs, safeguarding livelihoods and helping in seamless resumption of business activity,” the ministry noted in its statement adding that these changes will further facilitate flow of institutional credit at reasonable terms.

While the Civil Aviation sector will now be eligible under ECLGS 3.0, the government has removed the current ceiling of Rs 500 crore of loan outstanding for eligibility under ECLGS 3.0.

The government has also extended validity of ECLGS till September 2021 or till guarantees for an amount of Rs 3 lakh crore are issued and disbursement under the scheme permitted up to end December.

In March, this year the government had extended the scope of ECLGS through introduction of ECLGS 3.0 to cover business enterprises in Hospitality, Travel & Tourism, Leisure & Sporting sectors.

Initially, the scheme was valid till October 2020 and it was extended to November end. The scheme was again extended in November as part of Aatmanirbhar Bharat 3.0 package till March 31, 2021 by including the 26 stressed sectors identified by the RBI-constituted K V Kamath committee.

News source- Economic Times

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