The Union Cabinet vide Press Release dated June 30,2021 has announced the approval of Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS) enabling funding to the tune of Rs. 50,000 crores to provide financial guarantee cover for brownfield expansion and greenfield projects related to health/ medical infrastructure. The Cabinet has also approved introduction of a scheme for other sectors/lenders including those allied to better healthcare. Detailed modalities would be finalized in due course depending upon the evolving situation.
Another decision by the Cabinet was the approval of additional funding up to Rs. 1,50,000 crores under Emergency Credit Line Guarantee Scheme (ECLGS).
The LGSCAS Scheme would be applicable to all eligible loans sanctioned up to 31.03.2022, or till an amount of Rs. 50,000 crore is sanctioned, whichever is earlier. The ECLGS Scheme would be applicable to all eligible loans sanctioned under Guaranteed Emergency Credit Line (GECL)till 30.09.2021, or till an amount of rupees four lakh fifty thousand crore is sanctioned under the GECL, whichever is earlier.
*Tanvi Singh, Editorial Assistant has put this story together.