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The Union Cabinet is likely to consider a proposal related to a revamped Emergency Credit Line Guarantee Scheme (ECLGS) in its meeting on Tuesday (Mya 5), according to sources.
The proposed framework is expected to extend credit guarantee support across all sectors, marking a broader coverage compared with earlier iterations of the scheme that were largely targeted at specific stressed segments during the pandemic period.
ALSO READ | Revised growth, deficit numbers after Q1; fuel pricing to remain a ‘balancing act’: CEA
Sources indicate that the overall credit guarantee envelope under the new ECLGS may be in the range of ₹2.25 lakh crore to ₹2.50 lakh crore.
The scheme is also expected to include sector-wise sub-limits to ensure calibrated allocation of guarantees across industries.
The government has been working on designing a fresh ECLGS-type intervention in the context of emerging external risks, including the ongoing geopolitical tensions in West Asia, which have contributed to volatility in global trade, energy prices, and supply chains.
While the proposal is on the Cabinet agenda, final approval and design details may be subject to changes following discussions, sources added.
ALSO READ | India’s tax collections grow just 5% in FY26, beat target but show clear slowdown
The proposed framework is expected to extend credit guarantee support across all sectors, marking a broader coverage compared with earlier iterations of the scheme that were largely targeted at specific stressed segments during the pandemic period.
ALSO READ | Revised growth, deficit numbers after Q1; fuel pricing to remain a ‘balancing act’: CEA
Sources indicate that the overall credit guarantee envelope under the new ECLGS may be in the range of ₹2.25 lakh crore to ₹2.50 lakh crore.
The scheme is also expected to include sector-wise sub-limits to ensure calibrated allocation of guarantees across industries.
The government has been working on designing a fresh ECLGS-type intervention in the context of emerging external risks, including the ongoing geopolitical tensions in West Asia, which have contributed to volatility in global trade, energy prices, and supply chains.
While the proposal is on the Cabinet agenda, final approval and design details may be subject to changes following discussions, sources added.
ALSO READ | India’s tax collections grow just 5% in FY26, beat target but show clear slowdown
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