Scheme for MSMEs has few takers in Meghalaya

Syllad | The Rising MeghalayaJune 29, 2020

Aimed at helping entrepreneurs to restart their economic activities, the centrally funded Emergency Credit Line Guarantee Scheme (ECLGS), however has few takers in the state.

The Government of India has recently funded upto Rs 3 lakh crore through introduction of ECLGS to eligible micro, small and medium enterprises (MSMEs) and interested MUDRA borrowers who have been impacted by the lockdown on account of COVID 19.

The Scheme provides 100% guaranteed coverage by National Credit Guarantee Trustee Company Ltd (NCGTC) to eligible member lending institutions for providing Guaranteed Emergency Credit Line (GECL) facility which may be upto 20% of the outstanding of eligible borrowers as on 29.2.2020.

The objective of this initiative is to infuse additional liquidity to the entrepreneurs to help them restart economic activity.

“However the Ministry of Finance has intimated the State Government that out of the 7,947 eligible loan accounts under the scheme so far only 2198 accounts have been sanctioned out of which only 1,178 disbursed,” Commissioner & Secretary of Finance department Dr Vijay Kumar said.

In his letter to all the deputy commissioners recently, Dr Kumar has requested them to ensure wide publicity regarding the availability of the scheme to eligible borrowers so that they can avail the GECL facility.

He has also requested the DCs to seek the help of the traditional village dorbars, village employment councils, and block development officers to reach out to the eligible borrowers in the state.