Hans News Service Vijayawada

Ministerfor micro, small and medium enterprises (MSMEs) Kondapalli Srinivas welcomed the Centre’s launch of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, describing it as a crucial relief measure for industries affected by the ongoing political and economic instability in West Asia.

The minister said the scheme would help businesses secure additional working capital through government-backed credit guarantees at a time of rising global uncertainty and supply-chain disruptions. He stated that the Central government would provide guarantee coverage on additional loans extended by scheduled banks and financial institutions under the scheme.

Explaining the framework of ECLGS 5.0, the minister said MSMEs would receive 100 per cent credit guarantee coverage in the event of loan default, while non-MSME sectors would be eligible for guarantee protection of up to 90 per cent.

Eligible businesses can avail additional credit of up to 20 per cent of the highest outstanding working capital utilised during the fourth quarter of the 2025-26 financial year, he said. The scheme allows each eligible borrower to access additional credit support of up to Rs 100 crore.

According to the minister, the facility will apply only to loans sanctioned before March 31, 2027, and disbursed by June 30, 2027. He clarified that only borrowers maintaining regular repayment records with banks and financial institutions would qualify for the scheme. The scheme will be administered and monitored by the National Credit Guarantee Trustee Company Limited (NCGTC).

Highlighting Andhra Pradesh’s MSME ecosystem, Srinivas said the state currently has nearly 20.77 lakh MSME units, including 4.98 lakh manufacturing enterprises, around 10 lakh service-sector units and 5.74 lakh trading establishments.

The minister urged MSMEs impacted by the West Asia crisis to utilise the scheme to strengthen liquidity and sustain operations. He also thanked the Central Government for introducing ECLGS 5.0 at a critical time for domestic industries.