Hospitality - #SectorUpdates

In a big boost for hospitality and related sectors, Union Cabinet has approved Emergency Credit Line Guarantee Scheme (ECLGS) worth Rs 50,000 crore for hospitality, travel and tourism sectors. The overall ECLGS allotment has been hiked from Rs 4.5 lakh crore to Rs 5 lakh crore. The additional amount has been earmarked exclusively for hospitality and allied sectors till March 31, 2023. Till date, loans worth around Rs 3.67 lakh crore have been sanctioned under ECLGS, which is a continuing scheme implemented to counter severe disruptions triggered by the COVID 19 pandemic. The increased allocation is expected to incentivize lending institutions to provide additional credit at low cost, thereby enabling these business enterprises to meet their operational liabilities and continue their businesses. The lower cost will help fund working capital for tourist operators, small hotels and restaurants.

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