New Delhi; August 18: The Union Cabinet has approved an Emergency Credit Line Guarantee Scheme (ECLGS) worth Rs 50,000 crore for the hospitality, travel and tourism sectors. The overall ECLGS allotment has been hiked from Rs 4.5 lakh crore to Rs 5 lakh crore, Union Information and Broadcasting Minister Anurag Thakur has said.

“Cabinet approved enhancement of limit of emergency credit line guarantee scheme by Rs 50,000 crore for travel, tourism and hospitality sector,” Thakur said. The amount comes as a stimulus for the hospitality sector reeling under the impact of the pandemic.

The additional amount has been earmarked exclusively for hospitality and allied sectors till March 31, 2023. As of August 5, loans worth around Rs 3.67 lakh crore have been sanctioned under ECLGS.   

The additional allocation is also aimed at incentivising lending institutions to provide additional credit of up to Rs 50,000 crore at low cost so that the sector can meet its operational liabilities.

“With high immunisation levels, progressive roll-back of restrictions and overall economic recovery, conditions are in place for sustained growth in demand for these sectors as well. This additional guarantee cover is expected to support the recovery of these sectors as well,” the government’s release on Cabinet decisions approved under the leadership of Prime Minister Narendra Modi read.  

It further stated that the revival of the hospitality sector and allied industries is necessary since they provide large number of jobs and, in turn, help in aiding overall economic recovery.  Experts say outbound tourism from India will surpass USD 42 billion by 2024 and such initiatives by the Government will boost this market with enormous potential.