Expanded Scope of ECLG Scheme
The centre has expanded the scope of the Emergency Credit Line Guarantee Scheme (ECLGS). The civil aviation sector and oxygen generator plants are newly added under the scope of the scheme.
The centre has further extended the benefits to other sectors. It includes hospitality, travel and tourism, leisure, and sports. The government has removed the loan outstanding ceiling of Rs 500 crore for these sectors. With this, bigger entities in these sectors with even higher outstanding loans can also avail of loan benefits under the ECLG scheme.
The ECLG scheme was originally introduced to benefit the MSMEs. But now, it has also included the larger entities of some of the worst impacted sectors.
Aviation is the latest addition to this list which is a welcome move considering the severe financial crunch the industry is currently bearing.
Plight of Mall Operators
As states are easing the lockdown norms, the mall operators are expecting an early relief. The Shopping Centres Association of India (SCAI) has urged the state governments not to prolong the shutdown. They are expecting permission to reopen in the initial stages itself.
The shopping malls are facing a severe financial crunch as rentals have dried up. It has made it difficult to manage staff expenses and clearing their credit lines. Mall operators have also asked to extend the loan moratorium period considering their tight financials.
The SCAI suggested that the industry has incurred losses of around Rs 3,000 crore in the last two months. It has impacted their operations.
The industry body has warned that there could be massive layoffs or a huge pile of NPAs coming out from the sector if restrictions are extended for one more month.
Serum's Words of Comfort
The Serum Institute of India (SII) is confident to supply 9-10 crore doses of Covishield in June.
In a letter to the Home Minister Amit Shah, the SII has also expressed its commitment to increase its production capacity further.
India's issue of vaccine shortage is expected to ease considerably post June with improving production capacity. The SII had earlier communicated to increase its production capacity up to seven crore doses in July and 10 crores by August and September.
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