Businesses such as hotels, civil aviation and tour operators, which have been hit hardest by the second wave of covid-19, will be helped through the Extended Emergency Credit Line Guarantee Scheme (ECLGS), a Crisil report said on Wednesday.

The plan was first announced in May last year, when the deep economic impact of the pandemic was becoming apparent. The latest version of the scheme is valid till the end of September 2021 or till the outlay of INR 3 lakh crore is exhausted.

More sectors have been brought under the purview of the scheme, certain eligibility criteria have been relaxed, and Micro, Small and Medium Enterprises (MSMEs) have been allowed to take loans for a longer period, stating that a loan of INR 2.54 Loans of INR lakh crore have been sanctioned under the scheme till May.

The agency said the revised plan also relaxed eligibility criteria for companies in the civil aviation sector also including airlines and airport operators and in the hospitality, travel and tourism, and leisure and sports sectors. 30 percent sequential demand contraction in the June quarter.

ECLGS's Chief Rating Officer Subodh Rai said the civil aviation sector in particular, has been severely affected by the current ban on international flights and very weak domestic demand.

"The move to include civil aviation in the scheme will provide the sector much-needed liquidity support amid materially constrained cash generation ability due to several localised lockdowns," Subodh Rai said.

ECLGS's director Nitin Kansal said "Our study shows utilising Rs 1,000 crore can provide oxygen support to nearly 1 lakh beds and go a long way in preparing the country”s health infrastructure for future pandemic waves,"


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