Cabinet clears credit enhancement for hospitality sector

The Union Cabinet on Wednesday cleared the enhancement in the limit of emergency credit line guarantee scheme (ECLGS) by Rs 50,000 crore, from Rs 4.5 lakh crore to Rs 5 lakh crore for the hospitality and tourism sectors, which had faced disruptions due to the Covid-19 pandemic.

Minister for Information and Broadcasting Anurag Singh Thakur told the media after the Cabinet meeting, the additional amount of Rs 50,000 crore would be given to the hospitality sector till the validity of ECLGS, i.e. till March 31, 2023.

According to an official statement, the enhancement would provide relief to the tourism and hospitality sector by incentivising banks to provide additional credit of up to Rs 50,000 crore at low cost, which would help enterprises under the sector to meet their operational liabilities.

Under ECLGS, which is an ongoing scheme, loans of Rs 3.67 lakh crore have been given till August 5.

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