will enable 2.55 lakh crore in additional credit for eligible business borrowers, both micro and small business enterprises, including 5,000 crore for airlines facing short-term liquidity stress. Prime Minister Narendra Modi said ECLGS 5.0 reflected the Centre’s commitment to supporting India’s businesses, especially the MSME sector, in challenging global times.
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“By enabling additional credit flow with strong guarantee coverage, this initiative will help a wide range of sectors. Our focus remains on empowering enterprises, sustaining growth momentum and safeguarding livelihoods,” he said.
Crystal Matrix Ltd will set up a `3,068 crore advanced packaging facility in Dholera, cabinet minister Ashwini Vaishnaw said in a briefing. Suchi Semicon Ltd will invest `868 crore in a new facility near Surat.
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Boost to innovation system
Prime Minister Modi said on X that the new projects will help make India a leader in the global semiconductor value chain, focusing on manufacturing, packaging and advanced materials. “India’s advances in the world of semiconductors will boost economic transformation, technological self-reliance and encourage the innovation ecosystem,” he posted on X.
On April 3, ET had reported that India is drawing up a new to help industry cope with the fallout of the Gulf war. With an outlay of 18,100 crore, the scheme offers a 100% credit guarantee for MSMEs and 90% for non-MSMEs and airlines on incremental loans extended to eligible borrowers. Vaishnaw said this was the biggest of all the scheme variants. ECLGS 1.0 was launched in May 2020 during the Covid-19 pandemic.
ET Bureau“At this time when globally people are getting attracted towards alternative supply chains, if our MSMEs and exporters get timely strong support, they will be able to establish themselves,” he said, adding that the 2.55 lakh crore support was “huge” and would equip companies to better withstand the current stress.
The finance ministry said the scheme aims to enable businesses to tide over the challenges arising from the Gulf conflict. “Additionally, this is expected to help businesses maintain their operations, protect jobs, and sustain supply chains,” it said, noting that the proposed credit guarantee scheme was a major step to help businesses, particularly MSMEs and the airline sector, to ensure their additional working capital needs are catered to by the banks and financial institutions.
“By providing timely liquidity the scheme will sustain the businesses and prevent job losses. It will also promote uninterrupted domestic production and maintain the resilience of the ecosystem,” the ministry said. Only borrowers with accounts deemed as standard, with existing working capital limits in case of MSMEs and non-MSMEs and scheduled passenger airlines having outstanding credit facilities, will be eligible.
The loan tenure for MSMEs and non-MSMEs will be five years from the date of first disbursement, including a moratorium of one year, and for the airline sector it will be seven years, including a moratorium of two years.
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Under the scheme, additional credit for MSMEs and nonMSMEs will be capped at 100 crore, and for airlines it will be limited at 1,500 crore per borrower, subject to certain conditions. Within these limits, MSME and nonMSME borrowers can avail credit up to 20% of peak working capital utilised during the last quarter of FY26, while airlines can avail up to 100%.
The scheme will be applicable to all loans sanctioned up to March 2027, the statement noted.
Railway track, ship repair
The Cabinet Committee on Economic Affairs (CCEA) approved three railway multi-tracking projects worth `23,437 crore. These are the third and fourth lines of the Nagda-Mathura, GuntakalWadi and Burhwal-Sitapur sections.
An official statement said the capacity augmentation works will result in additional freight traffic of 60 million tonnes per annum (MTPA). The CCEA also gave its nod to a ship repair facility at Vadinar in Gujarat.
The project will be jointly implemented by the Deendayal Port Authority (DPA) and (CSL) with a `1,570 crore investment.
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