Budget 2022: Govt extends ECLGS scheme for MSMEs till March 2023
Union Minister of Finance Nirmala Sitharaman at Parliament for the presentation of the Union Budget 2022-23 on Feb 1.
The Emergency Credit Line Guarantee Scheme (ECLGS) that provided much needed additional credit to over 1.3 crore MSMEs will be extended till March 2023 with its guarantee cover expanded by Rs 50,000 crore to Rs 5 lakh crore, Finance Minister Nirmala Sitharaman said on Tuesday. The additional amount will be exclusively earmarked for the hospitality and related segments to help them recover to pre-pandemic levels.
Presenting the Budget 2022-23 in Parliament, the Finance Minister said the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with required infusion of funds.
Union Budget 2022-23 FULL COVERAGE
"This will facilitate additional credit of Rs 2 lakh crore for micro and small enterprises and expand employment opportunities," she said.
To help the micro, small and medium enterprises (MSME) sector become more resilient, competitive and efficient, Sitharaman said a Raising and Accelerating MSME Performance (RAMP) programme will be rolled out with a Rs 6,000 crore outlay spread over 5 years.
"Hospitality and related services, especially those by micro and small enterprises, are yet to regain their pre-pandemic level of business. Considering these aspects, the ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by Rs 50,000 crore to a total cover of Rs 5 lakh crore with the additional amount being earmarked exclusively for hospitality and related sectors," the Finance Minister said.
Siddharth Maurya, Resource Specialist - Fund Management, said that the budget has taken some prudent initiatives for MSMEs which will boost manufacturing activities. Virendra Ranawat, co-founder, WoodenStreet, said that a lot of expectations have been met from the Budget.
Ashok Patel, CEO and Founder Max Ventilator, said that the continued policy support to MSMEs (ECLGS scheme) will be beneficial to a large number of medical device makers falling under the category.
Raghunandan Saraf, Founder & CEO, Saraf Furniture, said that the PLI Scheme for achieving the prime goal of 'Atma Nirbhar Bharat' has received excellent response from the domestic MSMEs, who were looking for the support from the government in the tough times.
This scheme guarantees cover extended by Rs 50,000 crore and now total up to Rs 5 lakh crore. MSMEs such as Udyam, e-shram, NCS & Aseem portals will be inter-linked, their scope will be widened.
READ MORE: Budget 2022: India to have its own Digital Currency. What Sitharaman said in Speech
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