Is It The Biggest Fiscal Component Of “The AATMANIRBHAR BHARAT ABHIYAN”?

Summary:

The Finance ministry has exclusively announced the biggest fiscal component of the Aatmanirbhar Bharat Abhiyan on June 7. Wherein, Mrs. Sitharaman gave the exact amount details of banks sanctioning loans and disbursements under the Emergency Credit Line Guarantee scheme (ECLGS) which includes all 12 Public sector banks, 20 Private sector banks and 10 Non-Banking Financial Companies.

Tweet from Nirmala Sitharamam

The Finance Ministry on July 7th announced that banks have sanctioned loans of about Rs 1,14,502 Cr under the 3-lakh Cr under the Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector staggering under the economic disaster caused by the COVID-19 Pandemic.  However, disbursements against this stood at Rs 56,091.18 lakh Cr till July 4 under the 100% ECLGS for micro, small and medium enterprises (MSMEs).

The latest number on ECLGS, as released by the finance ministry constitutes disbursements by all 12 Public sector banks (PSBs), 20 Private sector Banks, and 10 non- banking financial companies (NBFCs).

Under the ECLGs the loan amount sanctioned by PSB’s increased to Rs 65,863 Cr, of which Rs 35,575.48 Cr has been disbursed as of July 4.

Who will be the beneficiary?

The scheme will be applicable to all the loans sanctioned under the GECL facility during the period from the date of announcement of the scheme to OCTOBER 31st or till the amount of Rs 3 lakh Cr is sanctioned under Guaranteed Emergency Credit Line (GECL) whichever is earlier. All MSME borrower accounts with an outstanding credit of up to 25 Cr as on February 29th, which were less than or equal to 60 days past due as on that date i.e. regular SMA-0 and SMA-1, and with an annual turnover of up to Rs 100 Cr are eligible for GECL funding under the scheme.

Other highlights:

  • SBI has sanctioned Rs 20,628 Cr of loans and disbursed Rs 13,405 Cr.
  • Punjab National Bank has sanctioned Rs 8689 Cr, However, its disbursement stood at Rs 2,595 Cr as of July 4.
  • Tamil Nadu was sanctioned Rs 6,616 loans and disbursements of Rs 3,871 Cr.

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