The government unveiled the Emergency Credit Line Guarantee Program (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, and to healthcare, via ECGLS 2.0. FISME has now called for ECLGS 3.0 with “built-in flexibility” to be made available to more companies to deal with the current crisis.
“With tens and thousands of small establishments, lakhs of workers will come on (the) roads, increasing human misery,” he warned. “In economic terms too, it will reduce purchasing power further, creating a vicious cycle of downward economic spiral.”