Union Budget 2022 | Emergency Credit Line Guarantee Scheme for MSMEs extended till March 2023

The Union Budget for 2022-23 has announced several measures for the micro, small and medium enterprises (MSMEs) sector that included extension of Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023.

Union Finance Minister Nirmala Sitharaman, while tabling the Union Budget 2022-23 on Tuesday, said the ECLGS had provided much-needed additional credit to more than 130 lakh MSMEs. This helped them mitigate the adverse impact of the COVID-19. The hospitality and related services, especially those by micro and small enterprises, were yet to regain their pre-pandemic level of business.

Considering these aspects, the government announced the extension of guarantee cover by another ₹50,000 crore taking the total cover under the scheme to ₹5 lakh crore, with the additional amount being earmarked exclusively for the hospitality and related enterprises.

Further, the Centre said Credit Guarantee Trust for Micro and Small Enterprises scheme would be revamped with required infusion of funds. This would facilitate additional credit of ₹2 lakh crore for Micro and Small Enterprises and expand employment opportunities.

To help the MSME sector become more resilient, competitive and efficient, the Centre would roll out Raising and Accelerating MSME Performance (RAMP) programme with an outlay of ₹6,000 crore over five years.

The budget document also said that Customs duty exemption given to steel scrap last year was being extended for another year to provide relief to MSME secondary steel producers.