Union budget 2022 | Emergency credit line for MSMEs extended until March 2023
The Union budget for 2022-2023 announced several measures for the micro, small and medium-sized enterprises (MSME) sector, including the extension of the Emergency Credit Line Guarantee (ECLGS) scheme until March 2023 .
Union Finance Minister Nirmala Sitharaman during the tabling of the Union budget said that the ECLGS had provided much needed additional credit to over 130 lakh MSMEs. This has helped them mitigate the negative impact of COVID-19. Hospitality and related services, especially those provided by micro and small businesses, had yet to recover to pre-pandemic levels of activity.
Considering these aspects, the government extended the ₹50,000 crore scheme bringing the total coverage of the scheme to ₹500,000,000 crore, with the additional amount reserved exclusively for hospitality and related businesses.
In addition, the Center said that the Credit Guarantee Fund program for micro and small enterprises will be revamped with the required injection of funds. This will facilitate additional credit of ₹2 lakh crore for micro and small businesses and expand employment opportunities. To help the MSME sector become more resilient, competitive and efficient, the Center will roll out the Raising and Accelerating MSME Performance (RAMP) program with an expenditure of ₹6,000 crore over 5 years.
The budget document also said that the duty exemption given to scrap steel last year was being extended for another year to relieve secondary steel producers in MSMEs.