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The <keyword id="47209" type="General" weightage="20" keywordseo="finance-ministry" source="Orion">Finance Ministry</keyword> on Wednesday expanded the scope of the ₹4.5 lakh crore <keyword id="9254513" type="General" weightage="20" keywordseo="Emergency-Credit-Line-Guarantee-Scheme" source="Orion">Emergency Credit Line Guarantee Scheme</keyword> (<keyword id="9254383" type="General" weightage="20" keywordseo="ECLGS" source="Orion">ECLGS</keyword>) to support micro, small and medium enterprises facing liquidity issues due to the COVID-19 pandemic. The validity of the scheme has been extended by another six months till March 31, 2022, the ministry said in a statement. The government has been receiving demands from various industry bodies and other stakeholders to extend the scheme to ensure continued support to eligible sectors/businesses, it added. "With a view to support various businesses impacted by the second wave of <keyword id="8764728" type="General" weightage="20" keywordseo="covid-19" source="Orion">COVID 19</keyword> pandemic, it has been decided to extend the timeline of ECLGS till March 31, 2022, or till guarantees for an amount of ₹4.5 lakh crore are issued under the scheme, whichever is earlier," the ministry said. Further, it said, the last date of disbursement under the scheme has also been extended to June 30, 2022. The modifications have been made in the scheme to enable support to businesses impacted by the second wave of COVID, it said, adding existing borrowers under ECLGS 1.0 and 2.0 would be eligible for additional credit support of up to 10 per cent of total credit outstanding as of February 29, 2020, or March 31, 2021, whichever is higher. Businesses who have not availed assistance under ECLGS (ECLGS 1.0 or 2.0), can avail credit support of up to 30 per cent of their credit outstanding as of March 31, 2021, it said. Businesses in sectors specified under ECLGS 3.0, who have previously not availed ECLGS, can avail credit support of up to 40 per cent of their credit outstanding as of March 31, 2021, to the maximum of ₹200 crore per borrower. Incremental credit can be availed within these limits by existing ECLGS borrowers whose eligibility increased because of a change in cut-off date to March 31, 2021, from February 29, 2020. Accordingly, "borrowers who have availed assistance under ECLGS and whose credit outstanding as on March 31, 2021, (excluding support under ECLGS) is higher than that on February 29, 2020, shall be eligible for incremental support within the cap stipulated under ECLGS 1.0, 2.0 or 3.0. "The modification introduced would ensure that businesses adversely impacted by the second wave of COVID-19 get enhanced collateral-free liquidity. Further, this provides much-needed support to all the ECLGS borrowers (which mainly consist of <keyword id="6358354" type="General" weightage="20" keywordseo="msme" source="Orion">MSME</keyword> units) in time for the busy / festival season," the ministry said. The scheme since its launch in May last year has extended relief to over 1.15 crore MSMEs and businesses, it said, adding it has provided support to eligible borrowers in meeting their operational liabilities and restarting their businesses in the wake of disruptions caused by the COVID-19 pandemic. As of September 24, 2021, loans sanctioned have crossed ₹2.86 lakh crore under the scheme and out of total guarantees issued, about 95 per cent of the guarantees issued are for loans sanctioned to MSMEs. The Finance Ministry in May expanded the scope of the ₹3 lakh crore ECLGS by including concessional loans to hospitals for setting up on-site oxygen generation plants. Besides, the validity of the scheme was extended by three months to September 30 and or till the amount was disbursed. The interest rate on these loans has been capped at 7.5 per cent, which means the banks can offer loans less than this ceiling. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/mobile/news/xiaomi-11-lite-ne-5g-with-120hz-display-snapdragon-778g-and-5g-support-launched-starting-at-26999/articleshow/86612169.cms">Xiaomi 11 Lite NE 5G with 120Hz display, Snapdragon 778g and 5G support launched starting at ₹26,999</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/some-domestic-flights-tickets-may-get-expensive-soon-as-government-mulls-removal-of-airfare-cap/articleshow/86611240.cms">Some domestic flights tickets may get expensive soon, as government mulls removal of airfare cap</a>

Finance Ministry extends Emergency Credit Line Guarantee Scheme till March 2022

The Reserve Bank of India on Sunday said lending institutions should assign zero% risk weight on the credit facilities extended under the Emergency Credit Line Guarantee Scheme to MSME borrowers announced by the government in the wake of COVID-19 pandemic. The government in May introduced the Emergency Credit Line Guarantee Scheme (ECLGS) for providing 100% guarantee coverage for additional working capital term loans (in case of banks and financial institutions) and additional term loans (in case of NBFCs) up to 20% of their entire outstanding credit up to Rs 25 crore as on February 29, 2020. The credit facility is guaranteed by the National Credit Guarantee Trustee Company (NCGTC). "As credit facilities extended under the scheme guaranteed by NCGTC are backed by an unconditional and irrevocable guarantee provided by Government of India, it has been decided that Member Lending Institutions shall assign zero percent risk weight on the credit facilities extended under this scheme to the extent of guarantee coverage," the RBI said in a notification. Lending institutions include, banks, eligible NBFCs and HFCs, and All India Financial Institutions (SIDBI, NHB, NABARD, EXIM Bank). In a separate release, the RBI said the central government has re-nominated Natarajan Chandrasekaran as a part-time non-official Director on the Central Board of Reserve Bank of India, for a further period of two years beyond March 3, 2020, or until further orders. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/only-5-of-the-governments-msme-emergency-loan-package-is-disbursed-after-a-month/articleshow/76437386.cms">Only 5% of the government’s MSME emergency loan package is disbursed after a month ⁠— private banks are sitting tight</a> <a href="https://www.businessinsider.in/business/corporates/news/bajaj-finance-share-price-and-earnings-expectation/articleshow/75751469.cms">Bajaj Finance’s quarterly earnings may not reflect the real potential for rebound⁠ after Sitharaman’s big push for MSME</a> <a href="https://www.businessinsider.in/india/news/fm-nirmala-sitaraman-announces-six-steps-for-msme-sector/articleshow/75717258.cms">Finance Minister Nirmala Sitharaman announces six measures for the MSME sector</a>

RBI tells banks to assign 'zero' risk for emergency loans to MSME

Mumbai, Jul 6 () The Finance Industry Development Council, a representative body of non-banking finance companies, has written to Finance Minister Nirmala Sitharaman seeking inclusion of all individuals who have taken loans for purchase of vehicles for commercial purposes for assistance under the Emergency Credit Line Guarantee Scheme (ECLGS). The National Credit Guarantee Trustee Company (NCGTC), which is providing 100 per cent guarantee under ECLGS, on July 2 clarified that all eligible borrowers, including business enterprises/MSMEs, individuals in case of loans covered under MUDRA scheme who have availed debt against vehicles for commercial purposes are eligible for assistance under ECLGS. FIDC said the assistance to eligible individual borrowers under ECLGS is just limited to loans given under MUDRA scheme. In the letter, FIDC requested to "include all loans given to individuals for purchase of vehicles (including construction equipment vehicles, taxis etc) which are registered for commercial purposes as eligible for assistance under ECLGS." More than 75 per cent of NBFC customers take loans in their individual names as they do not have any business establishment in the name of firm or partnerships and they conduct their business in individual names, the letter said. Every month NBFCs give loans ranging from Rs 3 lakh to Rs 25 lakh for purchase of vehicles for commercial purposes. Most of these loans are not refinanced under MUDRA scheme either as the loan amount is over Rs 10 lakh or as the interest spread is higher than mandated to cover the operating costs and credit losses, the letter said. However, all these loans are disbursed exclusively for purchase of vehicles used for commercial purposes and create employment in the informal sector, it said. FIDC requested that a timely clarification on the issue will significantly help provide additional credit support to millions of MSMEs who are dependent on NBFCs for meeting their working capital needs. The government in May had announced ECLGS, a 100 per cent credit scheme worth Rs 3 lakh crore to support the MSME sector, which has been adversely affected by disruptions caused by the coronavirus crisis. HV MR MR

ECLGS: NBFC body seeks addition to list of individuals seeking assistance

New Delhi, Jun 15 () Finance Minister Nirmala Sitharaman on Monday held a meeting with the heads of major private sector banks, and asked them to ensure effective rollout of Rs 3-lakh crore ECLGS for the MSME sector, hit hard by coronavirus-induced lockdown. The meeting -- also attended by CEOs of major non-banking financial companies (NBFCs) -- on Emergency Credit Line Guarantee Scheme (ECLGS) was held through a video conference. The Finance Minister chaired a meeting through video conference with major private banks and NBFCs to ensure effective roll out of ECLGS and uninterrupted/ smooth liquidity to Indian MSMEs in this difficult time. Debasish Panda, Secretary, Department of Financial Services, was also present in the meeting, the finance ministry said in a tweet. As of June 11, public sector banks have sanctioned loans worth Rs 29,490.81 crore under the 100 per cent Emergency Credit Line Guarantee Scheme. Out of this Rs 14,690.84 crore has already been disbursed. The scheme is the biggest fiscal component of the Rs 20-lakh crore Self-Reliant India Mission package announced by Sitharaman last month. On May 21, the Cabinet had approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25 per cent through ECLGS for the MSME sector. Under the scheme, 100 per cent guarantee coverage are being provided by National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency (MUDRA) borrowers in the form of a guaranteed emergency credit line (GECL) facility. For this purpose, a corpus of Rs 41,600 crore was provided by the government, spread over the current and next three financial years. The scheme is applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the scheme to October 31 or till an amount of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier. The main objective of the scheme is to provide an incentive to member lending institutions to increase access and enable availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis, by giving them 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers. All MSME borrower accounts with an outstanding credit of up to Rs 25 crore as on February 29, which were less than or equal to 60 days past due as on that date, i.e., regular, SMA-0 and SMA-1 accounts, and with an annual turnover of up to Rs 100 crore, are eligible for GECL funding under the scheme. DP BAL

Ensure effective rollout of Rs 3-lakh crore ECLGS for MSMEs: FM to pvt banks

Crisis-hit <keyword id="19987725" type="General" weightage="20" keywordseo="spicejet" source="keywords">SpiceJet</keyword> plans to hand out pink slips to at least 1,000 employees in the coming days as the airline works to significantly reduce costs and streamline operations of its depleted aircraft fleet, officials said on Monday. Faced with financial woes, legal battles and other headwinds, the no-frills carrier might ask more staff to leave as there is excess manpower now compared to the number of planes in service. A final decision on the quantum of layoffs is expected this week, one of the officials in the know said. When contacted, a SpiceJet spokesperson said the airline has initiated several measures, including manpower rationalisation, for achieving profitable growth but did not provide any numbers. The airline has around 9,000 employees and is now looking at reducing the strength by 10-15 per cent, the official said, adding that layoffs are necessary to reduce the overall costs and annual savings could be up to Rs 100 crore. A reduction of 15 per cent would mean around 1,350 people will lose their jobs. The second official in the know said that layoffs are expected across departments and the final list is being prepared. People from the management and consultancy are working on chalking out the contours of letting staff leave, and all the departments have been asked to give their inputs, the official added. There was no official comment from SpiceJet on the proposed job cuts. The second official explained that the airline has stopped operations on certain RCS (Regional Connectivity Scheme) routes and at those stations, there is excess manpower, especially staff with lower salaries. Relocating such people will be a challenge, the official noted. Currently, SpiceJet has a fleet of little over 30 aircraft apart from 10 planes that are on wet lease. "As part of our turnaround and cost-cutting strategy, following the recent fund infusion, SpiceJet has initiated several measures, including manpower rationalisation, aimed at achieving profitable growth and positioning ourselves to capitalise on the opportunities in the Indian aviation industry. "Through this initiative alone, we anticipate an annual saving of up to Rs 100 crore," the airline spokesperson said in a statement. During a meeting with the airline's senior officials last month, SpiceJet Chairman and Managing Director <keyword id="19916067" type="General" weightage="20" keywordseo="ajay-singh" source="keywords">Ajay Singh</keyword> emphasised the importance of judicious spending and that he will personally oversee all major expenditures. The carrier will prioritise fleet upgrades, enhance on-time performance and cost-cutting measures will be implemented to streamline operations, according to an internal note last month. SpiceJet, which has undergone multiple ownership changes since inception and is currently helmed by Ajay Singh, is in the process of raising funds from various investors. On January 26, the carrier announced that it has received Rs 744 crore as the first tranche of the total Rs 2,250 crore proposed to be raised through the issuance of securities on a preferential basis. There were reports that there has been a delay in raising the requisite funds. The airline has also availed funds worth around Rs 1,000 crore under the government's Emergency <keyword id="20097541" type="General" weightage="20" keywordseo="credit-line-guarantee-scheme" source="keywords">Credit Line Guarantee Scheme</keyword> (ECLGS) and Singh has committed to infuse Rs 500 crore. In recent times, SpiceJet also witnessed lessors taking legal recourse to take back their leased aircraft due to non-payment of dues. <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword> is one of the world's fastest growing civil aviation markets and the domestic air traffic is on an upward trajectory. However, SpiceJet has been struggling for sometime now. In 2023, the carrier flew 83.90 lakh passengers and had a domestic market share of 5.5 per cent. 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Crisis-hit SpiceJet plans to hand out pink slips to at least 1,000 employees

<ul><li>The number of <keyword id="6358354" type="General" weightage="100" keywordseo="msme" source="Orion">MSME</keyword>s have gone down in 2021-22 compared to 2020-21 because a number of MSMEs have grown bigger and crossed the MSME threshold. </li><li>MSMEs across all sectors have shown strong resilience to bounce back post the pandemic-induced slowdown. </li><li>The <keyword id="4656676" type="General" weightage="80" keywordseo="udyam" source="Orion">Udyam</keyword> portal and the Emergency Credit Line Guarantee Scheme have helped MSMEs to weather the storm. </li></ul>The micro, small and medium enterprises (MSME) sector is charting a new story post pandemic, with credit growth to MSMEs consistently higher – both on a year-on-year basis and also in comparison with larger industries, according to SBI Research. Incentives provided by the Emergency Credit Line Guarantee Scheme (ECLGS), coupled with lower gross non-performing asset (GNPA) ratios have helped in boosting credit to MSMEs, the SBI Research report said. Interestingly, the number of MSMEs have gone down in 2021-22 compared to 2020-21 because a number of MSME units have grown bigger and crossed the ₹250 crore turnover threshold that defines an MSME unit under the new definition, enforced in 2020. A company bigger than ₹250 crore is considered a mid-sized corporate firm. MSMEs have shown strong resilience to bounce back from the pandemic- induced slowdown seen in 2020. In some sectors that were not affected by the pandemic – like hospitality, construction, NBFCs, power, metals and so on, the credit outstanding as of March 2022 was almost 3x that seen in March 2018. There were sectors that were affected but have recovered from the pandemic – like edible oil, printing, consumer durables, pharmaceuticals, jute, aviation, etc, – with credit expansion for some of these in March 2021 lower than the March 2018 levels, but these have staged a smart recovery in March 2022, the report said. Some industries like mining, petrochemicals, cement, FMCG and others were deeply impacted by the pandemic but have almost recovered. A couple of initiatives from the Government of India may have helped MSMEs weather the storm and chart a strong growth story, according to SBI Research. Udyam portal: Turning informal micro enterprises formal In July 2020, the Government of India launched <keyword id="15931646" type="General" weightage="50" keywordseo="udyam-assist-platform" source="Orion">Udyam Assist Platform</keyword> (UAP) to bring all the Informal Micro Enterprises (IMEs) – which constitute around 99% of the MSMEs in the country – into the formal ambit without complex and complicated paperwork. The UAP will enable IMEs who aren’t registered under GST to get a registration certificate based on information with Banks/NBFCs. The Udyam registration may also help MSMEs in availing the benefits of multiple schemes of the <keyword id="5713874" type="General" weightage="50" keywordseo="ministry-of-msmes" source="Orion">ministry of MSMEs</keyword> such as Credit Guarantee Scheme, Public Procurement Policy, additional edge in government tenders and protection against delayed payments by corporates, etc. The IMEs will also become eligible for priority-sector lending by banks, be able to get collateral-free loans from banks and also be able to get licences, approvals and registrations easily. ECLGS: A saviour during pandemic The ECLG scheme acted as an enabler and helped MSMEs navigate the pandemic better. While at least 14.6 lakh MSMEs accounts were saved due to the ECLG scheme in absolute terms, MSME loan accounts worth ₹2.2 lakh crore improved since the inception of the ECLG scheme for the entire banking industry, as per SBI Research. This means that around 12% of the outstanding MSME credit has been saved from slipping into non-performing assets (NPAs) because of the ECLG scheme. Of the 14.6 lakh MSMEs accounts that were saved due to the ECLG scheme, almost 93.8% were in the <keyword id="16232960" type="General" weightage="50" keywordseo="micro-and-small" source="Orion">Micro and Small</keyword> category. If such units slipped into NPA, 1.65 crore workers would have become unemployed.

MSME sector is on a strong growth trajectory post the pandemic: SBI Research

<keyword id="6358032" type="General" weightage="100" keywordseo="spicejet" source="Orion">SpiceJet</keyword> announced a 20 per cent salary hike for pilots from October onwards. This follows last month's 6 per cent hike in salaries. Sources said that while the first tranche of Emergency Credit Line Guarantee Scheme (ECLGS) payment has been received by the airline, the second is expected shortly. Moreover, the company will be depositing <keyword id="17506" type="General" weightage="50" keywordseo="tds" source="Orion">TDS</keyword> of all employees in the next two-three weeks. And, a significant portion of the PF will also be credited. According to an internal mail to all the pilots, senior VP, <keyword id="9138754" type="General" weightage="50" keywordseo="gurcharan-arora" source="Orion">Gurcharan Arora</keyword> said that the Spicejet has received the approval for a loan under the government's ECLGS scheme. "The first tranche of the payment has already been received and the second trancher is expected very soon. Our management is working to raise an additional 200 million dollars." The mail also talked about resumption of normalcy in the aviation sector and said that the airline is flying towards growth and sustainability. On Tuesday, in a temporary measure to rationalise cost, SpiceJet decided to place some pilots on leave without pay for a period of three months. The airline said that it will be inducting <keyword id="26842" type="General" weightage="50" keywordseo="max" source="Orion">MAX</keyword> aircraft shortly and these pilots will be back in service as the induction begins. During the <keyword id="9580222" type="General" weightage="50" keywordseo="lwp" source="Orion">LWP</keyword> period, pilots will remain eligible for all other employee benefits as applicable i.e. all opted insurance benefits and employee leave travel. SpiceJet airline had earlier reported a net loss of Rs 789 crore (Rs 420 crore, excluding forex adjustment) for the quarter ending June 30, 2022 as compared to a net loss of Rs 729 crore in the quarter ending 30 June, 2021 as the business was severely impacted by record high fuel prices and a depreciating <keyword id="6355302" type="General" weightage="50" keywordseo="rupee" source="Orion">Rupee</keyword>. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/adani-transmission-to-become-net-zero-by-2050/articleshow/94371480.cms">Adani Transmission to become net-zero by 2050</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/the-pune-girl-who-self-made-it-to-the-india-rich-list/articleshow/94368050.cms">The Pune girl who self-made it to the India rich list</a>

SpiceJet announces 20% salary hike for pilots, says will bring back those put on leave without pay

<keyword id="6358032" type="General" weightage="100" keywordseo="spicejet" source="Orion">SpiceJet</keyword> on Tuesday said its board will meet on Friday to consider options to raise funds as well as to convert certain outstanding liabilities into equity shares of the company. The no-frills airline, which has been grappling with multiple headwinds, including legal woes, is looking to raise fresh capital through issuance of eligible securities to qualified institutional buyers. Besides, the carrier plans to issue equity shares on preferential basis consequent upon conversion of outstanding liabilities into equity shares of the company, subject to applicable regulatory approvals, according to a filing to the <keyword id="35140" type="General" weightage="50" keywordseo="bse" source="Orion">BSE</keyword>. Both plans will be taken up by the board of directors during its meeting scheduled for February 24. Specific details about the proposals could not be immediately ascertained. In December last year, SpiceJet Chairman and Managing Director <keyword id="6357826" type="General" weightage="50" keywordseo="ajay-singh" source="Orion">Ajay Singh</keyword> told shareholders that the company is engaged with investment bankers to raise up to USD 200 million in order to achieve its future plans. He had also said the increase in the <keyword id="9254513" type="General" weightage="50" keywordseo="emergency-credit-line-guarantee-scheme" source="Orion">Emergency Credit Line Guarantee Scheme</keyword> (ECLGS) to Rs 1,500 crore will go a long way in providing the much-needed stability to the sector. "The infusion of additional funds will help SpiceJet normalise its obligations, unground its fleet and induct new planes into our fleet... we have also completed a series of settlements with most of our major partners including manufacturers and lessors setting the stage for our seamless growth and expansion," he had said. On Tuesday, shares of the airline declined nearly 2 per cent to Rs 37.60 apiece in the afternoon trade on the BSE.

SpiceJet board will meet to consider fund raising funds, conversion of outstanding liabilities into equity

<keyword id="6358032" type="General" weightage="100" keywordseo="spicejet" source="Orion">SpiceJet</keyword> CEO <keyword id="6357826" type="General" weightage="80" keywordseo="ajay-singh" source="Orion">Ajay Singh</keyword> on Thursday said there is a need for "more rational airfares" in the country even as he tried to assuage concerns of a hike in airfares as a consequence of competitor Go First filing for voluntary insolvency by terming it a "temporary phenomena". He termed the Go First development as "extremely unfortunate" and expressed hope that the airline can use this opportunity to resolve their issues. Asked about concerns on hike in airfares as a consequence of competitor Go First filing for voluntary insolvency, the SpiceJet chief said: "Those are temporary phenomena". "Of course when there is a mismatch of supply and demand, airfares will go up but this settles quite nicely as you would have seen the last time an airline went down there was a temporary period of mismatch and the capacity came into the system and fares were back to normal," Singh said. He further said that while the era of low airfares has helped in boosting air travel in this country, sometimes it has also led to difficulties for airlines as is evident for all to see. He observed that more rational airfares are required in the country and hoped that the fares will be more rational in the times to come. Speaking to reporters on the sidelines of an Assocham event, Singh, who is also the President of the industry body, said it was "Not at all likely" that the aviation sector will be affected by one airline going down. "You will see that the number as on April 30, we had 4,50,000 people who travelled by air, that was a record number. At no time in the past has <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword> seen such a record number of people travelling by air and you will see the numbers bounce back really really quickly," he said. Asked how he looks at the development in the aviation sector (of an airline going down), he said: "It is of course extremely unfortunate but hopefully Go First can use this opportunity to resolve their issues and the sector at large can use this opportunity to resolve their issues and emerge even stronger". On SpiceJet's plan to add 25 aircraft to its fleet, he said: "During <keyword id="8764262" type="General" weightage="50" keywordseo="covid" source="Orion">Covid</keyword>, several of our aircraft had gone down and with increase in demand, we want to revive all those aircraft and there are so many small stations that have been left unconnected or less connected as a consequence of the problems that occurred during Covid. We hope to bring back all those flights and increase frequency to several destinations around the world". Budget carrier SpiceJet on Wednesday said it is working to revive 25 grounded planes and has so far mobilised Rs 400 crore for revival of these aircraft. The announcement came a day after competitor Go First filed for voluntary insolvency resolution proceedings and decided to cancel flights for three days starting May 3. In a statement, SpiceJet said funds for the revival of the 25 aircraft will be drawn from the government's Emergency <keyword id="9331772" type="General" weightage="50" keywordseo="credit-line-guarantee-scheme" source="Orion">Credit Line Guarantee Scheme</keyword> (ECLGS) and better cash accruals. The airline has around 80 planes in its fleet and is looking to revive 25 grounded Boeing 737 and Q400 aircraft. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/ajay-banga-as-world-bank-president-adds-to-success-stories-of-the-indian-americans-usispf/articleshow/99984193.cms">Ajay Banga as World Bank President adds to success stories of the Indian Americans: USISPF</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/arcelormittal-q1-net-income-falls-over-73-to-usd-1096-mn/articleshow/99983996.cms">ArcelorMittal Q1 net income falls over 73% to USD 1,096 mn</a>

Rise in airfares due to Go First's bankruptcy is temporary says SpiceJet CEO

<ul><li>Nirmal Sitharaman has expanded the emergency credit scheme by ₹50,000 crore.</li><li>The finance minister mentioned that the additional loans will go to the sector.</li><li>The wave of Omicron infections stopped people from travelling again, stalling a nascent recovery in the sector.</li></ul>India’s hotels, travel operators and players in the <keyword id="90487" type="General" weightage="20" keywordseo="hospitality-sector" source="Orion">hospitality sector</keyword> get a special mention in Finance Minister Nirmala Sithraram’s budget speech as part of the emergency credit scheme, which has been expanded by ₹50,000 crore to total cover of ₹5 lakh crore. She mentioned that the additional loans will go to the sector. “Considering these aspects, the ECLGS [Emergency Credit Line Guarantee Scheme] will be extended up to March 2023 and its guarantee cover will be expanded by ₹50,000 crore to total cover of ₹5 lakh crore, with the additional amount being earmarked exclusively for the hospitality and related enterprises,” Sitharaman said. ECLGS was a part of ₹20 lakh crore comprehensive package announced by the finance minister on May 13, 2020. The aim of this package is to aid micro, small and medium enterprises (MSMEs) to overcome the distress of the pandemic. Hospitality is one of the segments that still haven’t recovered from the pandemic. The wave of Omicron infections stopped people from travelling again, stalling a nascent recovery in the sector. The shares of Indian Hotels — one of the prominent companies in the Indian hospitality segment — <a href="https://stocktwits.com/vmehta/message/432212804">witnessed a spike </a>in their share prices post this announcement. <div type="image" title="ST hospitality" msid="89278316" hostid="261"></div> “The prolonged effect of COVID-19 pandemic on the overall hospitality sector has created a burden on small to medium scale players to service their debt obligations… We feel, in the 2022-23 budget, the GoI [government of India] shall create provisions to create liquidity for the travel &amp; tourism industry, provide directions to the central bank to roll out low interest working capital loan schemes and expedite the paperwork process,” Pranav Dangi, founder of hospitality startup Hosteller, had previously said. This is how other major hospitality stocks performed on the day of the budget. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hospitality Companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change in share price on February 1* </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Oriental Hotels (Taj) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+3.49% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Taj Gvk Hotels &amp; Resorts </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.65% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Chalet Hotels </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.65% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">The Leela Group </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+1.12% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Lemon Tree Hotels </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">+0.39% </td></tr></tbody><tbody></tbody></table>*Share price as of 1:55 p.m. Source: BSE “The ECLGS extension up to March 2023 and the increased cover of Rs. 50,000 crores to a total cover of ₹5,00,000 crore is a welcome move to empower our hospitality industry which has been struggling to cope with the COVID induced challenges,” Ajit Shah, Partner at White Panda Hospitality (parent entity of restaurants Tera Vita, Kiko-Bā and Dadel), said. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/economic-survey-2022-highlights-that-delhi-not-bengaluru-is-the-startup-capital-of-india/articleshow/89249128.cms">Delhi, not Bengaluru, is the startup capital of India, says Economic Survey</a> <a href="https://www.businessinsider.in/budget/news/indias-defence-budget-allocation-as-per-experts/slidelist/89250030.cms" data-type="tilCustomLink">Allocation for India's defence may see a nominal increase</a> <a href="https://www.businessinsider.in/budget/news/the-government-is-expected-to-announce-1-3-lakh-crore-for-railways-under-the-national-infrastructure-pipeline/articleshow/89256692.cms" data-type="tilCustomLink">The government is expected to announce ₹1.3 lakh crore for railways under the national infrastructure pipeline</a>

Budget makes a special allocation for loans to small travel operators and other players in hospitality

<ul><li>The <keyword id="6358354" type="General" weightage="20" keywordseo="MSME" source="Orion">MSME</keyword> sector is undergoing a quiet but steady revival, going by the increase in credit demand and a moderation in NPAs over the last one year.</li><li>A new report has revealed that thanks to the Indian government’s ECLGS scheme, credit demand in the MSME sector has surged rapidly.</li><li>A closer look at the data also suggests that the micro enterprises will need more assistance and time to recover, while the medium enterprises have rebounded the most.</li></ul>Micro, small and medium enterprises (MSMEs) are a critical cog of the Indian economy, contributing nearly a third to the country’s GDP and half of its exports. Now, in signs of a pickup in economic activity, a new report has outlined that <keyword id="5974967" type="General" weightage="20" keywordseo="MSME-credit" source="Orion">MSME credit</keyword> demand is now 60% higher than pre-pandemic levels. Given the importance of the MSME sector to the Indian economy, the Indian government <a href="https://www.businessinsider.in/india/news/fm-nirmala-sitaraman-announces-six-steps-for-msme-sector/articleshow/75717258.cms">announced the emergency credit line guarantee scheme (ECLGS) during the first wave of the Covid-19 pandemic</a> in the form of a ₹3 lakh crore assistance. This was part of the government’s <a href="https://www.businessinsider.in/policy/economy/news/top-highlights-of-finance-minister-nirmala-sitharaman-speech-on-modi-20-lakh-crore-covid-19-stimulus/articleshow/75714287.cms">larger ₹20 lakh crore stimulus package</a>. The scheme was subsequently extended <a href="https://www.businessinsider.in/finance/news/finance-ministry-extends-emergency-credit-line-guarantee-scheme-till-march-2022/articleshow/86614510.cms">multiple times</a> – with the latest extension lasting up to<a href="https://economictimes.indiatimes.com/news/economy/policy/eclgs-scheme-extended-up-to-march-2023-fm-in-budget/articleshow/89266078.cms"> March, 2023</a>. These measures, according to a MSME Pulse report by credit bureau Transunion <keyword id="6380215" type="General" weightage="20" keywordseo="Cibil" source="Orion">Cibil</keyword> and <keyword id="6391656" type="General" weightage="20" keywordseo="SIDBI" source="Orion">SIDBI</keyword>, have boosted growth in MSME credit demand as well as disbursements – although lenders are prioritising existing borrowers over new ones. <div type="image" title="Credit demand Q4 FY22." msid="93457276" hostid="261" caption="&amp;lt;p&amp;gt;Credit demand amongst MSMEs&amp;lt;/p&amp;gt;"></div> According to the report, credit demand has surged 60% when compared to the pre-pandemic levels, while commercial credit inquiries have also picked up pace in the last one year. Both these metrics are signs of a recovery in economic and business activity, the report stated. <cmsannotation type="cmsannotation" annotationid="Private lenders more proactive than public sector banks – NBFCs stage a recovery, too" comment="subhead" text="Private lenders more proactive than public sector banks – NBFCs stage a recovery, too">Private lenders more proactive than public sector banks – NBFCs stage a recovery, too</cmsannotation> Interestingly enough, private sector lenders – banks and financial institutions – are a little more proactive than public sector banks in issuing credit. Specifically, while credit from private lenders has seen a 69% increase, that from public sector banks has jumped 60%. Non-Banking Financial Company (NBFCs), which saw a decline in issuing credit in the December 2021 quarter, have since recovered quickly. <div type="image" title="Lender wise credit Q4 FY22." msid="93457315" hostid="261" caption="&amp;lt;p&amp;gt;Lender-wise credit&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="Disbursements growing steadily" comment="subhead" text="Disbursements growing steadily">Disbursements growing steadily</cmsannotation> After plunging during the second wave of Covid-19, credit disbursements have seen a steady growth since then, with the biggest rebound seen in the September 2021 quarter. <div type="Article" hostid="261" msid="93366552" title="Globalized inflation is a threat to global economy itself, says RBI guv Das" mstype="2" mssubtype="0"></div> Interestingly, small enterprises have been beneficiaries of the largest disbursements, followed by medium and micro enterprises. <div type="image" title="MSME loan disbursements Q4 FY22." msid="93457345" hostid="261" caption="&amp;lt;p&amp;gt;MSME loan disbursements&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="Medium enterprises show highest growth in loan size" comment="subhead" text="Medium enterprises show highest growth in loan size">Medium enterprises show highest growth in loan size</cmsannotation> The average loan size has increased rapidly – by nearly 50% – in the medium enterprises segment to ₹1.4 crore, from ₹95 lakh during the first wave of Covid-19. For micro enterprises, they have remained stagnant at ₹9 lakh, in comparison. <div type="image" title="MSME loan size Q4 FY22." msid="93457375" hostid="261" caption="&amp;lt;p&amp;gt;MSME loan size&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="NPAs are on the rise in the micro segment" comment="subhead" text="NPAs are on the rise in the micro segment">NPAs are on the rise in the micro segment</cmsannotation> The medium enterprises segment has the highest rate of non-performing assets (NPAs) in the MSME sector, followed by the micro and the small segments. Interestingly, the micro segment has seen a bigger increase in NPAs, while the small and medium segments have seen a relatively moderate increase when compared to the first wave of Covid-19. Over the last one year, though, NPAs across all the three segments are on the decline, having peaked during the second wave of Covid-19 last year. <div type="image" title="MSME NPAs Q4 FY22." msid="93457389" hostid="261" caption="&amp;lt;p&amp;gt;MSME NPAs&amp;lt;/p&amp;gt;"></div> SEE ALSO: <a href="https://www.businessinsider.in/business/news/mukesh-ambani-is-all-set-to-do-a-jio-with-green-energy/articleshow/93432238.cms">Mukesh Ambani is all set to do a ‘Jio’ with green energy</a> <a href="https://www.businessinsider.in/stock-market/news/why-tejas-fighter-aircraft-maker-hal-share-price-up-in-2022/articleshow/93426056.cms">This defence sector stock boosted investor wealth by 75%</a> <a href="https://www.businessinsider.in/finance/news/rbi-hikes-repo-rate-by-50-basis-point-to-5-4-as-inflation-is-still-uncomfortable/articleshow/93362291.cms">RBI hikes repo rate by 50 basis point to 5.4% as inflation is still ‘uncomfortable’</a>

MSME credit demand jumps 60% from pre-pandemic levels – a sign of rebound in economic activity

As India and other countries take concrete steps to adopt 5G, the number of job postings by telcos related to 5G increased by 65 per cent last month, from 5,265 job postings in January to 8,667 in July, a report showed on Wednesday. Active jobs were up by 46 per cent, whereas job closures went up by 75 per cent in the same period, according to GlobalData's analysis of 175 companies globally. <keyword id="6354504" type="General" weightage="100" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword> is hiring for 'Lead 5G Core &amp; Cloud Architecture' to support diverse use cases and core products for 5G. Vodafone Idea's posting for an 'AGM-Practice Lead-Smart Mobility' will be required to have experience in the smart mobility vertical and 5G-connected cars and electric vehicles. "India's 5G spectrum auction ended with Reliance Jio emerging as the top bidder along with Bharti Airtel, Vodafone Idea, and <keyword id="6367820" type="General" weightage="50" keywordseo="adani-group" source="Orion">Adani Group</keyword>. Bharti Airtel is planning to launch 5G services in India before the end of August," said <keyword id="14742572" type="General" weightage="50" keywordseo="sherla-sriprada" source="Orion">Sherla Sriprada</keyword>, business fundamentals analyst at GlobalData. Major players such as Ericsson, China Telecom, Deutsche Telekom and American Tower were discussing investment around CapEx and 5G production in 2022. Several tech companies are looking to hire engineers for developing 5G use cases. "For jobs such as network administration, testing and software development the firms are likely to hire experts in areas such as infrastructure development, equipment, network operations, and spectrum services," <keyword id="12694249" type="General" weightage="80" keywordseo="sriprada" source="Orion">Sriprada</keyword> added. <keyword id="6354427" type="General" weightage="50" keywordseo="apple" source="Orion">Apple</keyword> has also advertised roles in the 5G protocols layer and is hiring for 'RF Systems Architect', which looks at defining and researching emerging 6G spectrum policy, use cases and trends for radio access networks in advance for 6G radios. Nokia has also opened a 5G Industrial Incubation Lab in South Australia and posted a '<keyword id="14742573" type="General" weightage="50" keywordseo="graduate-engineer-in-technology" source="Orion">Graduate Engineer in Technology</keyword>' role. "It's not only 5G investments that companies are looking at as they have also shown an interest in 6G investments and related roles," said Sriprada. Over 130 jobs were posted between January 2022 to July 2022 based on 6G as a title search. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/rupee-gains-22-paise-against-the-dollar-as-crude-prices-ease-fpis-come-back/articleshow/93619085.cms">Rupee gains 22 paise against the dollar as crude prices ease, FPIs come back</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/cabinet-clears-proposal-to-raise-eclgs-corpus-to-rs-5-lakh-cr-for-tourism-and-hospitality-sector/articleshow/93618831.cms">Cabinet clears proposal to raise ECLGS corpus to Rs 5 lakh cr for tourism and hospitality sector</a>

You Searched For "eclgs" and got 12 results

Finance Ministry extends Emergency Credit Line Guarantee Scheme till March 2022

PTI

RBI tells banks to assign 'zero' risk for emergency loans to MSME

PTI

ECLGS: NBFC body seeks addition to list of individuals seeking assistance

PTI

Ensure effective rollout of Rs 3-lakh crore ECLGS for MSMEs: FM to pvt banks

PTI

Crisis-hit SpiceJet plans to hand out pink slips to at least 1,000 employees

PTI

MSME sector is on a strong growth trajectory post the pandemic: SBI Research

Anagh Pal

SpiceJet announces 20% salary hike for pilots, says will bring back those put on leave without pay

IANS

SpiceJet board will meet to consider fund raising funds, conversion of outstanding liabilities into equity

PTI

Rise in airfares due to Go First's bankruptcy is temporary says SpiceJet CEO

PTI

Budget makes a special allocation for loans to small travel operators and other players in hospitality

Kritti Bhalla

MSME credit demand jumps 60% from pre-pandemic levels – a sign of rebound in economic activity

Rounak Jain

Reliance Jio, Voda step up hiring as 5G related job postings up 65%

IANS

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