MSME Ministry Mulls ECLGS-Like Credit Scheme To Aid Msmes Hit By West Asia Crisis

(MENAFN- KNN India) New Delhi, Apr 16 (KNN) The Ministry of Micro, Small and Medium Enterprises (MSME) is in discussions with the Department of Financial Services (DFS) to explore a credit guarantee scheme similar to the Emergency Credit Line Guarantee Scheme (ECLGS), aimed at supporting MSMEs affected by the ongoing West Asia crisis.

MSME Ministry Additional Secretary Rajneesh was quoted by PTI as saying, "We are in constant touch with the Department of Financial Services regarding ECLGS kind of a mechanism. So, at an appropriate stage I will be in a position to share further details on this."

Raw Material Support and Stakeholder Engagement

The secretary noted, the ministry is also working through its field officers with industry bodies and National Small Industries Corporation (NSIC) to ensure the supply of domestic bulk raw materials to MSMEs.

"So, in the last three months, more than one lakh metric tonne of raw material has been provided. If we look at the figures of March on a year-to-year basis, a 12.5 per cent increase has happened," he added.

Addressing an inter-ministerial briefing on developments in West Asia, Rajneesh said the MSME Ministry continues to engage with stakeholders and is adopting a whole-of-government approach, while closely monitoring the situation to support the sector.

He added that the ministry is holding regular consultations with MSME associations at the central, state, and sub-state levels, with field offices maintaining constant contact with them.

Learning from Pandemic-Era Support

Launched in May 2020 under the Aatmanirbhar Bharat Abhiyan, the ECLGS provided emergency credit support to businesses during the COVID-19 disruption, covering multiple sectors and helping firms meet operational liabilities.

(KNN Bureau)

MENAFN16042026000155011030ID1110989871