Present form of ECLGS scheme needs modifications urgently: CIA

Chennai: CIA – Consortium of Indian Associations , a forum for unified voice of the industry especially MSEs , across India , has been proposing to the government on various field level issues faced in availing benefits from schemes including ECLGS and also suggesting what is required at ground level to revive and survive.

“The disbursal of Rs 68311 crore against Rs.123,345 crore sanctioned, means only about 55 per cent of sanctioned loan is actually disbursed, as on 60th day of the announcement. Also, only 41 per cent of the total budgeted amount has been sanctioned even after nearly 45 days of Unlock period and only about 22 per cent of the budgeted allocation has been disbursed. The poor disbursal points to various field issues such as needs of documentation, fulfillment of conditions of sanction, sanction of inadequate funds and arbitrary use of funds by the banks / FI for settling dues which may not be the priority of the enterprise including regularisation of their accounts , Creation of MoD – have contributed to poor disbursal as against sanctions,” according to K E Raghunathan, convenor of CIA.

Kenny Ramanand , national general secretary of All India Manufacturers
Organisation and coordinator of CIA formation, said about 18 lakhs units have received the funds out of 37 lakhs units sanctioned. This points out that about 40 per cent of the units out of the estimated 45 lakhs beneficiaries have already received the funds. Another interesting aspect is that as per this statistics only an average of Rs 3,80,000 per enterprise has been sanctioned as against the budgeted average of Rs.6,66,000 per enterprise. How an industry can turn around from a nearly tree months of lockdown phase, with a meagre amount of Rs 3.80 lakh?.