EMERGENCY CREDIT LINE GUARANTEE SCHEME TO BE EXTENDED UP TO MARCH 2023; GUARANTEE COVER TO BE EXPANDED BY RS. 50,000 CRORE TO SUPPORT HOSPITALITY AND RELATED ENTERPRISES
The Emergency Credit Line Guarantee Scheme (ECLGS) will be extended up to March 2023 and its guarantee cover will be expanded by Rs. 50,000 crore. The total cover will now be Rs. 5 lakh crore announced the Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman while presenting the Union Budget 2022-23 in the Parliament here today. The additional amount is being earmarked exclusively for the hospitality and related enterprises. The Finance Minister noted that the ECLGS has provided much-needed additional credit to more than 130 lakh MSMEs. This has helped them mitigate the adverse impact of the pandemic. The proposal has been made considering the aspect that the hospitality and related services, especially those by micro and small enterprises, are yet to regain their pre-pandemic level of business. The Finance Minister also made several other proposals relating to the MSME sector.
Additional credit through revamped Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme
The Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) Scheme will be revamped with required infusion of funds. This will facilitate additional credit of Rs. 2 lakh crore for Micro and Small Enterprises and expand employment opportunities, the Finance Minister stated.
Raising and Accelerating MSME Performance (RAMP)
The Finance Minister announced the rolling out of Raising and Accelerating MSME Performance (RAMP) programme with outlay of Rs. 6,000 crore over 5 years. This will help the MSME sector become more resilient, competitive and efficient.
Interlinking of Udyam, e-Shram, NCS and ASEEM portals
The Finance Minister also proposed that Udyam, e-Shram, NCS and ASEEM portals will be interlinked. Their scope will be widened. They will now perform as portals with live, organic databases, providing G2C, B2C and B2B services. These services will relate to credit facilitation, skilling, and recruitment with an aim to further formalize the economy and enhance entrepreneurial opportunities for all.
Rationalization of Custom Duties
In furtherance of rationalizing various duties, the Finance Minister proposed that the duty on umbrellas is be raised to 20 per cent. Exemption to parts of umbrellas be withdrawn. Exemption is also being rationalized on implements and tools for agri-sector which are manufactured in India. Customs duty exemption given to steel scrap last year is being extended for another year to provide relief to MSME secondary steel producers. Certain Anti- dumping and CVD on stainless steel and coated steel flat products, bars of alloy steel and high-speed steel are being revoked in larger public interest considering prevailing high prices of metals
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.