What’s in the news?

• The Union Cabinet has approved 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, with the additional amount being earmarked exclusively for enterprises in hospitality and related sectors.  
• The increase has been done on account of the severe disruptions caused by COVID-19 pandemic on hospitality and related enterprises.
• ECLGS is an already operational scheme and on account of the disruptions caused by the COVID 19 pandemic on hospitality and related sectors, Government has specifically earmarked an amount of Rs. 50,000 crore for enterprises in these sectors.  
• The enhancement is expected to provide much needed relief to enterprises in these sectors by incentivizing lending institutions to provide additional credit of up to Rs. 50,000 crore at low cost, thereby enabling these business enterprises to meet their operational liabilities and continue their businesses.
• Loans of about Rs. 3.67 Lakh crore have been sanctioned under ECLGS till 5.8.2022.

Reference

https://pib.gov.in/PressReleasePage.aspx?PRID=1852527