Union Finance Minister Nirmala Sitharaman, as part of Union Budget 2022, announced that the Emergency Credit Line Guarantee Scheme (ECLGS) has been extended till March 2023.
The scheme was introduced by the finance ministry in 2020 to help micro, small and medium enterprises (MSMEs) amid the Covid-19 pandemic.
The guarantee cover under the scheme has been expanded by Rs 5 trillion, said the FM.
Since the hospitality sector is yet to recover from pre-pandemic levels, additional funds will be earmarked for the sector.
Other incentives for MSMEs:
- MSME portals such as Udyam, e-Shram, NCS and Aseem will be interlinked and their scope will be widened. They will perform as portals of live organic databases providing services such as credit facilitation and enhancing entrepreneurial opportunities
- Existing tax benefits for startups will be extended by one more year.
- A 5-year program will be rolled out to accelerate the performance of MSMEs.