The emergency line of credit guarantee program will be extended until March 2023; MSMEs and the hospitality sector are supported

The emergency line of credit guarantee program will be extended until March 2023; MSMEs and the hospitality sector are supported

The Emergency Credit Line Guarantee Scheme (ECLGS) will be extended till March 2023 and its guarantee coverage will be extended by Rs. 50,000 crores. The total coverage will now be Rs. 5 lakh crore, the Union Finance and Corporate Affairs Minister has announced Nirmala Sitharaman while presenting the Union budget 2022-23 to Parliament here today.

The additional amount is reserved exclusively for the hotel and related businesses.

The Finance Minister noted that the ECLGS has provided much needed additional credit to more than 130 lakh MSME. This has helped them mitigate the negative impact of the pandemic.

The proposal was made taking into account that hospitality and related services, especially those offered by micro and small enterpriseshave not yet returned to their pre-pandemic level of activity.

The Minister of Finance also made several other proposals relating to the MSME sector.

During this time, the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) will be reorganized with the required injection of funds. This will facilitate additional credit of Rs. 2 lakh crore for micro and small businesses and expand employment opportunities, the finance minister said.

The Finance Minister also announced the roll out of the Raising and Accelerating MSME Performance (RAMP) program with an expenditure of Rs. 6,000 crores over 5 years. This will help the MSME sector to become more resilient, competitive and efficient.

The Minister of Finance has also proposed that Udyam, e-Shram, NCS and ASEEM portals will be interconnected. Their field of action will be widened. They will now operate as portals with live organic databases, providing G2C, B2C and B2B services. These services will focus on credit facilitation, training and recruitment with the aim of further formalizing the economy and improving entrepreneurial opportunities for all.

And as part of the streamlining of various duties, the Minister of Finance has proposed that the duty on umbrellas be increased to 20%. The exemption for parts of umbrellas be removed. Exemption is also being streamlined for agricultural implements and tools that are manufactured in India.

The duty exemption given last year to steel scrap is being extended for another year to provide relief to MSMEs producing secondary steel. Certain anti-dumping and countervailing duties on stainless steel and coated steel flat products, alloy steel and high-speed steel bars are being revoked in the public interest, given high metal prices.

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