Centre extends ECLGS scheme till March
Govt plans to list ECGC, infuse Rs 4,400 cr capital in 5 years
NEW DELHI: The Finance Ministry on Wednesday expanded the scope of the Rs 4.5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) to support micro, small and medium enterprises facing liquidity issues due to the COVID-19 pandemic.
The validity of the scheme has been extended by another six months till March 31, 2022, the ministry said in a statement.
The government has been receiving demands from various industry bodies and other stakeholders to extend the scheme to ensure continued support to eligible sectors/businesses, it added.
The modifications have been made in the scheme to enable support to businesses impacted by the second wave of COVID, it said.
The Cabinet on Wednesday approved Rs 4,400-crore capital infusion in the state-owned credit insurance provider ECGC Limited and its listing through an initial public offering.
The government also approved continuation of the National Export Insurance Account (NEIA) scheme and infusion of Rs 1,650 crore Grant-in-Aid over five years.
Giving details of the decisions taken at the Cabinet Committee on Economic Affairs (CCEA), Commerce Minister Piyush Goyal said the government has undertaken a series of measures to provide a boost to the exports sector.
In line with this, he said the government has approved capital infusion of Rs 4,400 crore to ECGC
Ltd (formerly known as Export Credit Guarantee Corporation of India Ltd.) over a period of five years (FY 2021-2022 to FY 20252026).
The minister also informed that the country's exports till September 21, 2021, this fiscal were at USD 185 billion and may touch USD 190 billion by the end of the first of the financial year.
The approved infusion along with efforts made to suitably synchronise with the listing process of ECGC through the Initial Public Offering will increase the underwriting capacity of ECGC to support more exports.
Goyal said Rs 500 crore will be infused in the ECGC immediately and another Rs 500 crore in the next financial year. The rest would be need based.
He also said the government will start the process to list the stateowned entity soon, and the IPO would hit the market during the next financial year.
Replying to a query regarding the capital infusion in ECGC, he said: "If we are able to insure more people (exporters) and use the available headroom, then the funds would be made available as and when required. Cabinet has specifically said that first instalment be released immediately.”