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Indian Government Announces ECLGS 2.0 for Stress Sector

India’s Finance Minister and corporate affairs Nirmala Sitharaman today announced guaranteed credit to support the stressed sector as part of the Atmanirbhar Bharat Package 3.0. The period of additional credit under ECLGS 2.0 is 5 years including the 1 year moratorium of principal repayment. This scheme will be available until March 31, 2021.

The Emergency Credit Line Guarantee Scheme (ECLGS) 2.0 is used for unsecured additional credits that are 100% guaranteed at maximum interest rates. Up to 500 chlores as of February 29, 2020. Unpaid entities up to Rs 5 billion, previously covered by existing schemes. There is no limit to annual sales. As of February 29, 2020, an entity with a deadline of 30 days or less (SMA 0). Up to 20% additional credit unpaid as of February 29, 2020.

“ECLGS 2.0 provides highly needed relief for stressed sectors by helping entities retain employment and meet their obligations, as well as goods and services for qualified entities. It also benefits the MSME sector, which provides the services, “said Sisaraman.

To increase employment, Sisaraman also announced Atmanirbhar Bharat Rozgar Yojana. The central government will provide two-year grants on the following scales to new eligible employees hired after October 1, 2020: 1,000 employees; 12 percent of EPF wages for establishments that employ more than 1,000 employees.

Prabhu Dhamodharan, a convener at the Texpreneurs Federation (ITF) in India, welcomed the AtmaNirbhart Bharat 3.0 action and said: It will help SMEs take advantage of that opportunity to improve their performance. “

According to Dhamodharan, the ECLGS scheme will help MSME solve liquidity problems, and the announcement will also benefit other hiring companies.

“A new scheme of 24% EPF contributions from the government to companies that employ up to 1,000 workers to encourage new jobs will support the largest number of companies in the textile and apparel sector,” Dhamodaran said. I added.

According to Sisaraman, under the existing ECLGS 1.0 of 300 million rupees announced as part of Aatmanirbhar Bharat Abhiyaan, as of November 12, 2020, 205 million rupees borrowers sanctioned 610,000 rupees. it was done. Of this amount, Rs 152,000 has been paid to date.

Fiber2Fashion News Desk (RKS)

India’s Finance Minister and corporate affairs Nirmala Sitharaman today announced guaranteed credit to support the stressed sector as part of the Atmanirbhar Bharat Package 3.0. The period of additional credit under ECLGS 2.0 is 5 years including the 1 year moratorium of principal repayment. This scheme will be available until March 31, 2021.



Indian Government Announces ECLGS 2.0 for Stress Sector

Source link Indian Government Announces ECLGS 2.0 for Stress Sector

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