New Delhi: The government will expand loan guarantees to business to Rs 4.5 lakh Crore from the previous limit of RS 3 Lakh Crore, Minister of Finance Nirmala Sitharaman said on Monday.
The Emergency Credit Line Guarantee Scheme (ECLGS), launched last year, has helped the small business hungry to raise funds during Covid-19 pandemic locking for working capital and to fulfill their orders.
The government will expand the benefits of a free foodgrain program for the poor, launched last year, until November which will cost Rs 93,870 Crore, so the total cost of the program becomes more than Rs 2.27 lakh Crore, the Minister of Finance said, said the Minister of Finance.
The existing limit for the ECLGS scheme was announced as part of the Package Crore RS 20-Lakh Atmanirbhar Bharat Abhiyan on May 2020, was Rs 3 Lakh Crore.
Last month, the Ministry of Finance expanded the scope of RS 3 Lakh Crore ECLG by entering a soft loan to the hospital to establish an oxygen generation factory in place.
In addition, the validity of the scheme was extended three months to September 30 and or until the guarantee for the number of Crore Rs 3 Lakh issued.
The last date of distribution under the scheme has been extended until December 31.
Meanwhile, India’s economic growth rate was picked up in January-March to 1.6% from the previous year, but economists were increasingly pessimistic about the second quarter after the second wave of Covid.
-19 Infection hit the country in April-May.
(With input from agency)