Chandigarh: Since the beginning of the Emergency Credit Line Guarantee Scheme (ECLGs) in May 2020, more than 1.88 lakh micro, small and medium enterprises (MSMEs) in Punjab have been disbursed by loans of 6,161 crores until November 16 this year.
This information was distributed at Rajya Sabha on Monday by Union Minister Msmes Narayan Rane for a question submitted by Punjab MP Pratap Singh Bajwa.
When ECLL was launched on May 2020, there were a total of 2,18,294 MSME accounts in Punjab qualified for the scheme, but the response was initially bad.
Announced Economic Stimulus, Finance Minister Union Nirmala Sitharaman on May 13, 2020, launched RS 3 Lakh Crore guaranteed free ECLG guarantees for MSMEs to overcome the cash crisis suffered during the Covid-19 pandemic period.
This loan is provided by the National Credit Guarantee Custedive Company (NCGTC) to the Bank, non-banking finance companies (NBFC) and financial institutions for further disbursement.
In September this year, the central government has expanded the ECLGS timeline until March 31, 2022, or until the guarantee extended by the number of Crore Rs 4.5 Lakh was released under the scheme.
Rane told Rajya Sabha that on November 19, the guarantee was released below the ECLG for loans approved 1.10 Crore MSME borrowers from all countries including Punjab, which formed around 95% of the amount of warranty issued.
For the question of whether the government has learned the reasons for the beneficiaries of the MSMEs to choose out of the scheme, the union minister replies that loan sanctions are a function of credit requirements for borrowers and business needs and member loan institutions provide sanctions on loans to MSME who meet the borrower’s requirements to apply it.
In accordance with the finance service department, data in connection with the MSMEs coming out of the scheme is not centrally maintained.
“The industry in Punjab has not been able to reap the full benefits of ECLG and one of the reasons for this can be more number of micro-industry units in the state compared to small and medium industries,” said Chandigarh based center) for research in rural and industrial development ( Crid) Satish Verma’s Professor (Economic) RBI seat.
It also underlines the need to improve the industrial sector by increasing micro units into small and medium units, he added.