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Textile, leather clusters among top users of ECLGS

Jun 16, 2020
Textile, leather clusters among top users of ECLGS

Textile, engineering, leather and infrastructure clusters of Tirupur, Coimbatore, Kanpur and Durgapur are among the top industries pumping additional investments into their businesses by taking advantage of the government’s Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for meeting the liquidity needs of industries during the COVID-19 crisis. Of the Rs 599.12 crore loans disbursed by public sector banks to micro, small and medium enterprises (MSMEs) under the scheme, the four industrial clusters have taken the lions share of the money at about Rs 360 crore.

"As of June 8 2020, PSBs have sanctioned loans worth Rs 1,109.03 crore for MSME hubs in 12 States under the 100% Emergency Credit Line Guarantee Scheme, of which Rs 599.12 crore has already been disbursed to 17,904 accounts," the office of finance minister Nirmala Sitharaman said in a tweet.

In terms of sanctions, industrial clusters at Tumkur in Karnataka, Rajkot, Durg in Chhattisgarh, Medak in Telangana, Kanpur, Coimbatore, Tirupur have also emerged as destinations that have most accounts and amounts for getting bank money under ECLGS. The Jalandhar industrial cluster has maximum 3,388 accounts that had got loan sanctions from banks, but the amount is a meagre rs 25 lakh. The industrial clusters in Nashik, Nagpur, Tumkur, Surat, Rajkot, Durg, Rourkela, Medak , Aligarh are other centres that have got major portion of bank loans under the scheme.