Federation of Indian Export Organisations (FIEO), the apex trade promotion body, has urged the Government to consider extending the repayment period by one more year for Emergency Credit Line Guarantee Scheme (ECLGS) 1.0, 2.0, 3.0 and 4.0.
As of now, the repayment period is of three to four years– including the moratorium period under the scheme which has been called a very short period by the Parliamentary Standing Committee on Industry– and there’s recommendation of an extension up to seven to eight years.
A. Sakthivel, FIEO President, said that the extension will reduce the repayment burden on the enterprises as businesses are again facing headwinds.
Recently, the union cabinet approved increasing the limit of the ECLGS scheme from Rs. 4.5 lakh cr to Rs. 5 lakh cr with an additional allocation of Rs. 50,000 cr solely for hospitality and related sectors.
He added that the ECLGS scheme has been extremely helpful to the industry by providing collateral-free credit, at a time when the quality of collateral has significantly deteriorated due to the pandemic.
