In Today’s News:
- ECLGS scheme expanded – ECLGS 4.0
- Glaciers in Uttarakhand.
1. ECLGS scheme expanded – ECLGS 4.0
On account of the disruptions caused by the second wave of COVID 19 pandemic to businesses across various sectors of the economy, the Government has further enlarged the scope of the Emergency Credit Line Guarantee Scheme.
Prelims GS – Economic Development
- ECLGS refers to Emergency Credit Line Guarantee Scheme.
- ECLGS was announced as part of the Aatma Nirbhar Bharat Package (ANBP) to provide fully guaranteed and collateral-free additional credit to MSMEs, business enterprises, individual loans for business purposes, and MUDRA borrowers, to the extent of 20 percent of their credit outstanding as on 29.2.2020.
- The Scheme aims at mitigating the economic distress being faced by MSMEs by providing them additional funding of up to Rs. 3 lakh crore in the form of a fully Guaranteed Emergency Credit Line(GECL).
- The main objective of the Scheme is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs), and Non-Banking Financial Companies (NBFCs) to increase access to, and enable the availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis, by providing them 100 percent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.
- Borrowers with credit outstanding up to Rs. 50 crore as of 29.2.2020, and with an annual turnover of up to Rs. 250 crore are eligible under the Scheme.
- Interest rates under the Scheme are capped at 9.25 percent for Banks and FIs, and 14 percent for NBFCs.
- The tenor of loans provided under the Scheme is four years, including a moratorium of one year on principal repayment.
Click here to view more about ECLGS on the official PIB release.
Mains GS3 – Economic Development
ECLGS 4.0 scheme features:
- ECLGS 4.0: 100% guarantee cover to loans up to Rs.2 crore to hospitals/nursing homes/clinics/medical colleges for setting up on-site oxygen generation plants, interest rate capped at 7.5%;
- Borrowers who are eligible for restructuring as per RBI guidelines of May 05, 2021, and had availed loans under ECLGS 1.0 of overall tenure of four years comprising of repayment of interest only during the first 12 months with repayment of principal and interest in 36 months thereafter will now be able to avail a tenure of five years for their ECLGS loan i.e. repayment of interest only for the first 24 months with repayment of principal and interest in 36 months thereafter;
- Additional ECLGS assistance of upto 10% of the outstanding as of February 29, 2020, to borrowers covered under ECLGS 1.0, in tandem with restructuring as per RBI guidelines of May 05, 2021;
- The current ceiling of Rs. 500 Cr. of loan outstanding for eligibility under ECLGS 3.0 to be removed, subject to maximum additional ECLGS assistance to each borrower has limited to 40% or Rs.200 crore, whichever is lower;
- Civil Aviation sector to be eligible under ECLGS 3.0
- Validity of ECLGS extended to 30.09.2021 or till guarantees for an amount of Rs.3 lakh crore is issued. Disbursement under the scheme permitted up to31.12.2021.
Benefits of ECLGS expansion:
- The modifications in ECLGS would enhance the utility and impact of ECLGS by providing additional support to MSMEs, safeguarding livelihoods, and helping in the seamless resumption of business activity.
- These changes will further facilitate the flow of institutional credit at reasonable terms.
Click here to view the Courtesy: Official PIB release.
2. Glaciers in Uttarakhand
No cracks were found in the glaciers in Uttarakhand after an aerial survey conducted by a team of scientists.
(Note: In the exam point of view, the location of the glaciers in Uttarkhand may be a notable part. Even a question related to the location of glaciers was asked in 2019 UPSC exams)
Prelims GS – Geography(Map-Based)
Some important Glaciers of Uttarkhand:
Glaciers in Kumaon Region
- Kafini Glacier
- Maiktoli Glacier
- Milam Glacier
- Namik Glacier
- Pindari Glacier
- Ralam Glacier
- Sunderdhunga Glacier
Glaciers in Garhwal Region
- Bander Punch Glacier
- Chorbari Bamak Glacier
- Dokriani Glacier
- Doonagiri Glacier
- Gangotri Glacier
- Khatling Glacier
- Nanda Devi group of Glacier
- Satopnath and Bhagirathi-Khark Glacier
- Tipra Bamak Glacier
Click here to view the official website to know more about these glaciers.
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