NEW DELHI: The government is going all out to ensure that liquidity concerns of the MSME sector are addressed on priority under its Emergency Credit Line Guarantee Scheme (ECLGS).
As of August 3, 2020 public sector and private banks have sanctioned loans worth over Rs 1.38 lakh crore under the 100 per cent Emergency Credit Line Guarantee Scheme, of which close to Rs 92,000 crore has already been disbursed.
There has been a big jump in sanctions in the last 18-20 days with sanctions increasing rapidly by about Rs 15,000 crore while disbursement increased even rapidly by close to Rs 25,000 crore.
In a tweet, office of finance minister Nirmala Sitharaman said: "As of 03 Aug 2020, the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,37,586.54 crore, of which Rs 92,090.24 crore has already been disbursed."
The ECLGS scheme is the biggest fiscal component of the Rs 20-lakh crore Self-Reliant India Mission package announced by Finance Minister Nirmala Sitharaman in May. To ensure that the scheme achieve its objective of providing adequate liquidity to the MSME segment during the current difficult period, the finance ministry has regularly held meetings with the banks.
A finance ministry statement said that banks from both public and private sector have contributed to the success of the ECLGS. Loan amounts sanctioned by Public Sector Banks increased to Rs 72,820.26 crore, of which Rs 52,013.73 crore has been disbursed as of August 3. (IANS)