Allow more time to repay emergency loans and launch ECLGS 3.0: FISME

The industry body representing micro, small and medium enterprises has written to the Reserve Bank of India, seeking to defer payment of emergency loan installments issued under last year’s Covid-19 relief package, citing the severe second wave. Comparing the current situation to an “emergency”, the Federation of Indian Small and Medium Enterprises (FISME) said RBI and the government should quickly set up a task force with only affected stakeholders and beneficiaries to look into the issues. encountered by small businesses in the field. level.

The government had unveiled the Emergency Line of Credit Guarantee Scheme (ECLGS) in May 2020 for MSMEs to help them overcome the impact of Covid-19 under Atmanirbhar Bharat. The program was then extended to 26 other sectors, as well as healthcare, via the ECLGS 2.0. FISME has now called for ECLGS 3.0 with “built-in flexibility” to be made available to more businesses to deal with the current crisis.

“With tens and thousands of small establishments, thousands of workers will come to (the) roads, greatly increasing human misery,” he warned. “In economic terms as well, it will further reduce purchasing power, creating a vicious circle of downward economic spiral.”

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