Rs 60,000 crore loan guarantee scheme not yet notified

Chennai: Covid-affected sectors, including hospitality, have not been able to benefit from the Rs 60,000 crore Loan Guarantee Scheme announced on June 28 as the finance ministry has not notified the scheme yet.

Finance minister Nirmala Sitharaman had announced Rs 1.1 lakh crore loan guarantee scheme, of which Rs 50,000 crore was allocated to the healthcare sector and Rs 60,000 crore to other Covid-hit sectors.

Over a month has passed since announcing the scheme but it has not yet been notified by the finance ministry, the Federation of Hotel & Restaurant Associations of India (FHRAI) said.
Neither the operational guidelines nor any other details of the scheme have been announced by the ministry, it added.

However, the loan guarantee scheme introduced simultaneously for the health sector has been notified and guidelines have been introduced by National Credit Guarantee Trustee Company.

“The hospitality sector is one of the worst affected sectors by the pandemic. But the government’s negligence really compels us to doubt the seriousness in its approach towards the industry’s hardships,” said Gurbaxish Singh Kohli, vice president, FHRAI. It has sought intervention of the finance minister in the matter.

Further, many of its members have reported that the banks and financial institutions are not processing the applications submitted for loans under ECLGS 3.0.