Government Sanctions INR 1,77, 353 Crore Under the Emergency Credit Line Guarantee Scheme

The Ministry of Finance informed that INR 1,25,425 crore has been disbursed to the MSMEs by the banks as of 21st September, 2020

The Ministry of Finance has notified about loan disbursement under the Emergency Credit Line Guarantee Scheme. It has been informed that the amount sanctioned to public sector banks and private sector banks stand at INR 1,77,353 crore. Out of which, INR 1,25,425 crore has been disbursed by the banks.

Nirmala Sitharaman, the Finance Minister of India, tweeted, "As of 21 Sept 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by #PSBs and private banks to #MSMEs and individuals stands at INR 1,77,353 crore, of which INR 1,25,425 crore has already been disbursed."

(Source: Twitter)

The Department of Expenditure, Ministry of Finance, has also lately granted permission to raise additional financial resources of INR 9,913 crore to 5 States through Open Market Borrowings (OMBs). These States are Andhra Pradesh, Telangana, Goa, Karnataka and Tripura. This permission has been accorded after these states successfully met the reform condition of implementation of One Nation One Ration Card System.

Here is the state wise details of the additional borrowing permission granted by the Indian government are as follows: -

1. Andhra Pradesh INR 2,525 crore

2. Telangana INR 2,508 crore

3. Karnataka INR 4,509 crore

4. Goa INR 223 crore

5. Tripura INR 148 crore

In view of the unprecedented COVID-19 pandemic, the central government had in May, 2020 allowed an additional borrowing limit of up to 2 percent of Gross State Domestic Product (GSDP) to the states for the year 2020-21. This made an amount up to INR 4,27,302 crore available to the states.