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Cabinet clears proposal to raise ECLGS corpus to Rs 5 lakh cr for tourism and hospitality sector

Aug 17, 2022, 17:25 IST
IANS
The Union Cabinet on Wednesday approved a proposal to enhance the outlay of Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 50,000 crore from 4.5 lakh crore to Rs 5 lakh crore for the tourism and hospitality sector, which had faced disruptions due to the Covid-19 pandemic.
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Information and Broadcasting Minister Anurag Thakur told mediapersons after the Cabinet meeting that the additional amount of Rs 50,000 crore would be given to the hospitality sector till the validity of ECLGS, i.e., till March 31, 2023. ECLGS is an ongoing scheme.

According to an official statement, the enhancement would provide relief to the tourism and hospitality sector by incentivising banks to provide additional credit of up to Rs 50,000 crore at low cost, which would help enterprises under the sector meet their operational liabilities.

Under ECLGS, loans of around Rs 3.67 lakh crore have been disbursed till August 5, 2022.

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