Union Minister for Tourism, Culture and Development of Northeastern region G. Kishan Reddy said the enhancement in the limit of Emergency Credit Line Guarantee Scheme (ECLGS) by ₹50,000 crore from ₹4.5 lakh crore to ₹5 lakh crore exclusively for enterprises in hospitality and related sectors is timely as the demand for these services is picking up.
Thanking Prime Minister Narendra Modi for extending the scheme validity till March 31, 2023, he said the hospitality and related sectors like hotels and restaurants, marriage halls, travel agents, tour operators, adventure or heritage facilities etc., will be eligible for borrowing. About ₹3.67 lakh crore loans have been sanctioned under ECLGS till August 8 for these sectors, said Mr. Reddy.
In an official note released on August 18, the Minister said the Modi government has been taking immediate action to restore and reactivate the tourism sector while protecting jobs and businesses. “We are planning to support the sustainable recovery of tourism, shifting to eco-tourism and rethinking tourism for the future,” he said.
Tourism and hospitality play a pivotal role in economic development given their high employability and the government had enhanced the credit line on account of the severe disruptions caused by COVID-19 pandemic on hospitality and related enterprises, he said.
With the enhanced credit line, high immunisation levels, progressive rollback of restrictions and overall economic recovery, conditions are in place for sustained growth in demand for these sectors, added the Minister in his press release.
