The Government has decided to extend the Emergency Credit Line Guarantee Scheme (ECLGS) for additional three months till June 2021 and widened its scope to issue additional funding up to 40 per cent of outstanding loans as on 29 Feb 2020 as against 20 per cent earlier.
This decision will help garment exporters as many are still facing financial issues due to COVID-19.
Industry believes that it will not only solve working capital issues but will also enable many businesses in the labour-intensive apparel industry to protect thousands of jobs.
Apart from this, modifications have been made in the scheme to incentivise member lending institutions (MLIs) to provide additional funding facility to the eligible beneficiaries saying it will help many to undertake servicing of big export orders.
Dr. A. Sakthivel, Chairman, Apparel Export Promotion Council (AEPC) welcomed this decision and thanked RBI Governor Shaktikanta Das for accepting this request.
