Enhancement of Corpus under ECLGS to infuse life in hotels and hospitality sector: Dr A Sakthivel, President, FIEO

New Delhi, August 17, 2022: Thanking the Government for enhancing the limit under the ECLGS Scheme from Rs 4.5 lakh crore to Rs 5 lakh crore with additional allocation of Rs 50,000 crore solely for hospitality and related sectors, the worst victims of Covid, which are still struggling to regain ground, Dr A Sakthivel, President, FIEO said that the enhancement is expected to provide much needed support to enterprises in these sectors by encouraging banks to provide additional credit of up to Rs 50,000 crore at a very competitive cost. The additional support will help the enterprises to meet their operational liabilities and further their businesses.

President FIEO requested that the Government may also consider extending the repayment period by one more year for ECLGS 1.0, 2.0, 3.0 and 4.0 so that the repayment burden on the enterprises is reduced as businesses are again facing headwinds.

Dr Sakthivel said that the ECLGS Scheme has been extremely helpful to the industry by providing collateral free credit, at a time when the quality of collateral has significantly deteriorated due to Covid. Many of the units have survived the onslaught of Covid due to timely support extended under the ECLGS Scheme which the Government has extended till the end of the fiscal.