#Emergency Credit Line Guarantee Scheme

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Emergency Credit Line Guarantee Scheme supporting MSME, now helping airlines in stress

Emergency Credit Line Guarantee Scheme supporting MSME, now helping airlines in stress

An efficient and strong civil aviation sector is increasingly becoming vital for the economic development of the country. Recognising its importance for the economic growth, the Department of Financial Services (DFS), Ministry of Finance, has modified the Emergency Credit Line Guarantee Scheme (ECLGS) to enhance the maximum loan amount eligibility for airlines under ECLGS 3.0 to 100% of their…

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The Role of Udyam Registration in India’s Economic Recovery Post-Pandemic

The COVID-19 pandemic disrupted economies worldwide, bringing unprecedented challenges to businesses, particularly small and medium enterprises (SMEs). In India, the Micro, Small, and Medium Enterprises (MSME) sector, which contributes significantly to GDP, employment, and exports, faced severe setbacks. The introduction of the Udyam registration system has been a critical step towards revitalizing this sector and, by extension, aiding India's economic recovery. This article explores the role of Udyam registration in bolstering India’s post-pandemic economic revival.   Understanding Udyam Registration:   Launched on July 1, 2020, by the Ministry of Micro, Small, and Medium Enterprises, Udyam registration replaced the previous Udyog Aadhaar Memorandum (UAM) with a more streamlined, digital, and efficient system. Udyam registration simplifies the process for MSMEs to register, bringing transparency, ease of business, and better integration with various government schemes.   Key Features of Udyam Registration:   1. **Digital Platform**: The entire registration process is online, reducing the need for physical paperwork and simplifying the overall procedure.    2. **Revised Classification Criteria**: MSME classification now includes both investment and turnover parameters, making it more inclusive and aligned with contemporary business environments.   3. **Automatic Data Integration**: The platform integrates with databases such as Aadhaar and GST networks, ensuring accurate and up-to-date information.    4. **User-Friendly Interface**: Minimal documentation is required, encouraging more businesses to formalize their operations.    5. **Single Window System**: The portal serves as a comprehensive platform for accessing various MSME-related services and benefits. Economic Challenges Post-Pandemic The pandemic-induced lockdowns and restrictions led to massive disruptions in supply chains, demand fluctuations, and financial distress for many businesses. MSMEs, often operating with limited reserves, were particularly vulnerable. Key challenges included:  **Liquidity Crunch**: Many MSMEs faced severe cash flow issues, struggling to pay employees and maintain operations. **Supply Chain Disruptions**: Interruptions in supply chains affected production and delivery schedules. **Reduced Demand**: A sharp decline in consumer spending led to decreased demand for goods and services. **Employment Losses**: With many businesses shutting down or scaling back, job losses in the sector were significant.   The Role of Udyam Registration in Economic Recovery Udyam registration has played a pivotal role in addressing these challenges and facilitating economic recovery in several ways: 1. **Access to Financial Support**    The formal registration of MSMEs through Udyam enhances their credibility, making it easier to access financial products such as loans and credit. Various government schemes, like the Emergency Credit Line Guarantee Scheme (ECLGS), were launched to provide financial relief to MSMEs. Registered enterprises are more likely to benefit from these schemes, helping them manage liquidity issues and sustain operations. 2. **Integration with Government Schemes**    Udyam registration ensures that MSMEs can easily access a plethora of government schemes designed to support their growth and recovery. These include subsidies, grants, and incentives aimed at promoting technological upgrades, market expansion, and skill development. The seamless integration with government databases through Udyam registration streamlines the process of availing these benefits. 3. **Formalization and Data Accuracy**    The digital nature of Udyam registration promotes formalization, bringing more enterprises into the official economic framework. Accurate data on the MSME sector helps policymakers design targeted interventions and measure their impact effectively. This formalization also facilitates better monitoring and support for businesses in distress.

4. **Boosting Digital Literacy**    The pandemic underscored the importance of digital transformation. By mandating an online registration process, Udyam registration encourages MSMEs to adopt digital tools and platforms, enhancing their operational efficiency and market reach. This shift towards digital literacy is crucial for competitiveness in a post-pandemic economy. Conclusion:   The Udyam registration system has emerged as a cornerstone in India’s strategy for economic recovery post-pandemic. By simplifying the registration process, enhancing access to financial support, promoting formalization, and fostering digital transformation, Udyam registration is empowering MSMEs to overcome challenges and contribute to the broader economic revival. As India continues to navigate the path to recovery, the resilience and growth of its MSME sector, facilitated by Udyam registration, will be crucial in building a more robust and inclusive economy.

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Here’s Everything You Need to Know about ECLGS

The global impact of the COVID-19 pandemic has been largely disruptive in every aspect, be it economic or something else. In those tough times, the Indian government introduced the COVID-19 financial relief package, under which the ECLGS scheme was also launched. ECLGS, or Emergency Credit Line Guarantee Scheme, is something under which financial entities in India provide emergency loan facilities to businesses and MSMEs that have suffered due to the COVID-19 pandemic. For more information Visit us now.

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ECLGS Scheme: Eligibility, Benefits, and Application Process

The Covid-19 pandemic significantly impacted almost every industry, especially small and medium-sized enterprises (SMEs).

To help MSMEs recover from the financial bash, the Indian Government launched the Emergency Credit Line Guarantee Scheme (ECLGS).

The INR 20,00,000 crore economic package was announced by the Indian Finance Ministry and Financial Services Department on February 29, 2020. 

In this article, we will discuss the eclgs, its benefits, eligibility and application process.

Visit here: https://expertseoinfo.com/eclgs-scheme-eligibility-benefits-and-application-process/

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THE MSME CREDIT CARD WILL BE AVAILABLE SOON

For merchants in the micro, small, and medium enterprises (MSME) sector, the government is set to provide a merchant credit card (MCC) facility this year to help these businesses get through their short-term liquidity problems. According to official sources, it is being created in the style of the Kisan Credit Card and will probably provide these units with incentives such as short-term, collateral-free loans up to a maximum at a lower rate.

However, the state-run Small Industries Development Bank of India’s (Sidbi) proposal to provide a digital “UPI-linked credit card” for MSMEs may be postponed since it necessitates wider inter-ministerial deliberations, according to the sources. Additionally, they stated, the concept of formalizing a shared set of rules for the two cards—MCC and Vyapar Credit Card (VCC)—with shared goals has been postponed.

Also Read: FOR EXPORTERS, ICICI BANK LAUNCHES DIGITAL SERVICES

As an incentive for businesses to register themselves on its Udyam site, the MSME ministry had already enlisted Sidbi to establish the VCC. The action was intended to encourage the formalization of more such small firms.

According to Sidbi’s proposal, the VCC will offer features including interest-free credit for 20–50 days and a Mudra loan facility. Additionally, it suggests up to 85% credit guarantee coverage for micro units through the Department of Financial Services’ National Credit Guarantee Trustee Company (DFS).

The Indian Banks’ Association (IBA), with active support from the DFS and the Reserve Bank of India, is developing the framework for the MCC (RBI). According to one of the sources, this comprehensive exercise also involves the ministries of commerce, industry, and MSME.

The VCC will necessitate lengthy discussions because of its numerous aspects, which will take time. As a result, the IBA has been tasked with moving through with its plan for the MCC and obtaining clearance from the necessary parties, including the finance ministry, according to a source.

In 2019, Prime Minister Narendra Modi announced a proposal to offer small business owners a pension plan as well as credit card services and loans up to Rs 50 lakh without any kind of guarantee.

The government’s intention to offer such credit card facilities is also a part of a larger effort to increase the flow of formal credit to MSMEs, who are largely responsible for the country’s job growth. More than 40% of MSMEs in India lack access to official sources of financing, according to the World Bank’s estimate.

A number of recent events, including demonetization, the implementation of the goods and services tax system, and most recently the pandemic, have had a significant negative impact on MSMEs. According to various researchers, a significant number of MSMEs were negatively impacted by the COVID epidemic in particular.

Also Read: IS THE INSURANCE INDUSTRY PREPARED TO MEET THE NEEDS OF SMES?

The Emergency Credit Line Guarantee Scheme (ECLGS), which facilitates guaranteed loans in the wake of the epidemic, was introduced by the government to lessen the shock. In April, among other measures, it granted $808 million (Rs 6,062 crore) help to revive COVID-affected MSMEs under a program supported by the World Bank.

According to the most recent statistics, outstanding credit to MSMEs increased by 5.6% to Rs 18.26 trillion in November from a year earlier, which is less than the 17.6% increase in non-food credit as a whole.

MSMEs make up around 40% of the nation’s exports, 6% of the GDP in manufacturing, and about 25% of the GDP in services.

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The Covid-19 pandemic significantly impacted almost every industry, especially small and medium-sized enterprises (SMEs). To help MSMEs recover from the financial bash, the Indian Government launched the Emergency Credit Line Guarantee Scheme (ECLGS). The INR 20,00,000 crore economic package was announced by the Indian Finance Ministry and Financial Services Department on February 29, 2020. In this article, we will discuss the eclgs , its benefits, eligibility and application process.

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Exploring The Emergency Credit Line Guarantee Scheme (ECLGS)

The Emergency Credit Line Guarantee Scheme (ECLGS) is a government initiative to provide financial support and credit assistance to businesses during times of economic distress. It aims to help businesses meet their working capital requirements and address the challenges posed by unforeseen circumstances.The Emergency Credit Line Guarantee Scheme (ECLGS) aims to support MSME recovery by providing a credit line to eligible businesses during times of financial stress.

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Nirmala Sitharaman to review public sector banks’ performance on July 6

This is the first review meeting by Sitharaman in the current fiscal after the review of the FY23 financial results of banks.

NEW DELHI: Finance minister Nirmala Sitharaman on Thursday (July 6) will meet the heads of public sector banks (PSBs) to take stock of their overall performance. She will review the credit growth, asset quality, capital requirement and overall profitability.

Besides this, she will also take feedback about the various government schemes, including Kisan Credit Card (KCC), Stand-Up India, Pradhan Mantri Mudra Yojana (PMMY) and emergency credit line guarantee scheme (ECLGS) to help businesses impacted by Covid-19.

This is the first review meeting by Sitharaman in the current fiscal after the review of the FY23 financial results of banks. “Finance minister will also discuss the bad loan situation in the banking sector. Though there has been a significant improvement in asset quality of banks, there are some sectors like gems and jewellery, textiles, construction and food processing which need attention,” a top official told this newspaper.

As per the Financial Stability Report of the RBI, the gross non-performing assets (GNPA) of the scheduled commercial banks fell to a 10-year low of 3.9 % in March 2023. These are likely to decrease further to 3.6% by March 2024, as per its report. The RBI conducted stress tests to assess the resilience of SCBs, which revealed that they are well-capitalised and capable of absorbing macroeconomic shocks.

Meanwhile, FM chaired a review meeting on the implementation of various Budget announcements with the Secretary, Department of Economic Affairs, Disinvestment Secretary, Banking Secretary, Corporate Affairs Secretary and other senior officials of the Finance Ministry in New Delhi on Tuesday.

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All About the Future of ECLGS- Scope, Trends, And Innovations

The Emergency Credit Line Guarantee Scheme (ECLGS) is a Government of India initiative. It has played a crucial role in providing emergency loans to businesses affected by the COVID-19 pandemic. As the landscape of emergency lending continues to evolve, several trends and innovations are expected to shape the future of programs like ECLGS scope. In this article, we will explore some potential developments that could redefine the way emergency lending is conducted.

The focus is on enhanced digital processes, extended eligibility criteria, customised loan structures, integration of risk assessment tools, collaboration with fin tech companies, and a greater emphasis on sustainability and resilience.

It’s important to note that these trends and innovations are speculative and may or may not materialise in the specific case of ECLGS or any other emergency lending programme. To get accurate and up-to-date information about the future of ECLGS or any specific programme, it is recommended to consult official government sources or reliable financial institutions.

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Overview of Govt. Initiatives on MSMEs MSMEs are the backbone of the Indian economy, contributing approximately 30% of the country’s GDP (Gross Domestic Product), 45% of manufacturing output and providing employment to 11 crores of India’s population. The Government of India has been proactive to ensure that all the benefit of these MSME schemes reaches to the MSMEs in time. The Union Budget 2022-23 focuses on ease of doing business for MSMEs. The most important measures include: Emergency Credit Line Guarantee Scheme (ECLGS) has delivered additional credit to more than 130 lakh MSMEs. The ECLGS will be extended up to March 2023 expanding the guarantee cover by INR 50,000 crore to a total cover of INR 5 Lakh Crore. INR 2 lakh crore additional credit for Micro and Small Enterprises to be facilitated under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). Raising and Accelerating MSME performance (RAMP) programme with an outlay of Rs 6,000 crore to be rolled out. Udyam, e-Shram, National Career Service (NCS) and Aatamanirbhar Skilled Employee Employer Mapping (ASEEM) portals will be interlinked. They will now serve as portals with live, organic databases, delivering G2C, B2C, and B2B services relating to credit facilitation, skilling, and recruitment.

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Go First Bankruptcy: SpiceJet to Fly 25 of Its Grounded Planes with Rs. 400 Crore Funding

As Go First announces bankruptcy, another leading airline – SpiceJet has strategized to bring back 25 of its planes, which were earlier out-of-service. The Emergency Credit Line Guarantee Scheme (ECLGS) will finance the expense of reviving the planes. The support is provided by the government to enhance the flow of cash. SpiceJet has till now secured about Rs. 400 crores to help with the return of the defunct planes, which will also boost the airline’s revenue.

The Chairman and Managing Director of SpiceJet, Ajay Singh said that they are working meticulously to return their grounded fleet to service and back in the air through ECLGS funding. It will assist the airline to capitalize and get the best out of the peak season for travel. The CEO, Kaushik Khona said that Go First has decided to halt operations for now on the 3rd and 4th of May 2023 because it has filed for voluntary insolvency resolution proceedings before NCLT (National Company Law Tribunal).

While the low-cost airline benefited people with its services, it is currently riddled with a financial crunch because of no supply of engines from P&W. This has led the airline to forcefully ground 28 of its planes. SpiceJet on May 1 revealed its plan to increase the flights from Saudi Arabia to India and its different cities to bring the people rescued from Sudan. This is regarding Operation Kaveri by the Indian Government.

The carrier said it is constantly in touch with the Indian Embassy in Saudi Arabia and the Ministry of External Affairs for future evacuation efforts. On April 30, the airline successfully brought 184 Indians on a flight from Jeddah to Kochi under Operation Kaveri. The airline will bring more evacuation flights to Indian cities from Saudi Arabia.

Presently SpiceJet has daily services from Jeddah to Delhi, Mumbai, and Calicut. Also, it operates flights from Riyadh to Delhi. 2,140 Indians are till now brought from Sudan under Operation Kaveri. In the past, SpiceJet has helped to bring back more than 1,600 students under Operation Ganga from Ukraine as it operated special flights to Suceava, Kosice, and Budapest.

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Finance Minister Nirmala Sitharaman tabled the Union Budget 2023-2024. Like previous Union Budgets, this fiscal year focuses on Inclusive Development (financial inclusion of small Businesses and support ease of doing business), promoting Public-Private Partnerships, Skilling (teaching-upskill), and setting off medium to long-term national development programs. In the previous blog, we set specific expectations out of the Union Budget for startups and businesses. Here is a roundup of Union Budget 2023 highlights.

Key Union Budget 2023 Highlights

The ease of doing business just got easier: 

More than 39,000 compliances were reduced, and over 3,400 legal provisions were decriminalized. Govt introduced the Jan Vishwas Bill to amend 42 central acts to further trust-based governance at all levels. Decriminalizing offenses in this context means a specific number of minor economic offenses which were earlier punishable with imprisonment will now be a penalty that a governing body would levy with revised fines and penalties.

The National Data Policy will allow access to anonymous data to create risk-based profiles to further the creation of adaptive KYC for Digital India. Government bodies will leverage Business PAN as the key identifier for assessing and accessing company data. It will reduce the complexity of doing business as it will reduce the usage of over 13 different business IDs, such as EPFO, ESIC, GSTN, TIN, TAN, and PAN, used to apply for various government approvals.

MSMEs Unbound:

Union budget 2023 focused mainly on the Micro, Small, and Medium Enterprises (MSMEs) sector. 

FM Nirmala Sitharaman declared the Vivad Se Vishwas scheme for failing MSMEs. MSMEs will receive 95% of the performance security from the government under this scheme in cases of failure to execute contracts.

Another big step is to enable timely payments to MSMEs. A deduction for payments made to MSMEs will only be allowed when it is paid off.

Extension of ECLGS To focus on the hospitality sector, the Finance Minister announced the extension of ECLGS up to March 2023. The Emergency Credit Line Guarantee Scheme (ECLGS) was launched amid the Covid-19 pandemic to help MSMEs cope with pandemic losses and was extended up to March 31, 2022. Considering the following aspects, the ECLGS will be extended up to March 2023, and its guarantee cover will be expanded by Rs 50,000 crore to a total surface of Rs 5 lakh crore.

Govt. will Revamp Credit Guarantee Trust for small micro-enterprises scheme (CGTMSE) with an additional infusion of 9000 Cr. It will allow for two lakh crores of rupees in collateral-free guaranteed credit. Furthermore, credit costs will be reduced by about 1%.

For presumptive taxation of small businesses and professionals:

The turnover limit for small businesses was expanded to Rs 3 crore from earlier Rs 2 crore, 

For certain professionals, it was broadened to Rs 75 lakh from earlier Rs 50 lakh.

Presumptive taxation can only be used when the value of cash receipts is at most 5 percent of the total value of the receipts.  Small businesses and professionals need not maintain their books of account and get their accounts audited, which relieves tedious tax filing exercises.

Reduction of customs duty on specific items and customs duty exemption on iron and steel scrap will contribute to the growth of MSMEs.

The government extends customs duty exemption to capital goods and machinery imports used to manufacture lithium-ion cells for EV batteries.​​ This cost drop will aid electric vehicle growth and help businesses produce EVs at a lower manufacturing cost.

The government extended the scope of the current DigiLocker to assist innovation in the fintech industry with Entity DigiLocker. Soon, Entity DigiLocker will allow MSMEs, companies, and charitable trusts to not only store but also share documents securely with authorities, regulators, banks, and other business entities.

Extended Tax holidays and a little more for StartUps: 

The Centre announced tax holidays along with many regulatory changes for Startups. They will be listed below:

FM Sitharaman extended the Tax Holiday Scheme for startups till March 31, 2024, which means that startups incorporated till the latest date next year can avail of tax benefits. The tax holiday scheme was earlier available for startups incorporated till March 31, 2023. Other Tax benefits are that the eligible start-ups incorporated before 1 April 2024 also stand to enjoy these tax measures, which are deferral of ESOP taxation under Section 192(1C), relaxation on carry-forward, and set-off of losses under Section 79, angel tax exemption.

The Budget 2023 provided relief to startups by giving the benefit of taking forward losses on a change of shareholding of startups from seven years to ten years. The condition of continuity of a minimum of 51% shareholding to offset carried-forward losses is relaxed for eligible startups if all company shareholders continue to hold those shares.

Govt. is widening the scope of Angel Tax to include non-resident investors. Levy of angel tax in the hands of private companies where consideration for issue of shares is higher than fair market value.  

As per the said section, the scope of this angel taxation specifically included only residents thus far.

However, the budget proposes to omit ‘resident’ from the said section with effect from 01 April 2024, thereby widening the ambit of taxation in the hands of startups to include investment received from non-residents.

Despite rapid modernization, India is deeply an agriculture-based economy. However, there are still a lot of relevant pain points within the sector that need to be solved to allow the industry to flourish. To facilitate this:

The government has created an Agriculture Accelerator Fund that will encourage new solutions and startups within the space and create a platform to promote information sharing amongst farmers.

Because of increased emphasis on digital payments, Govt. proposed the digitalization of 63,000 primary agricultural credit societies through an investment of INR 2516 crores through the Digital Agriculture Infrastructure Scheme.

Disease infestation has been a dire problem affecting 35% of total crop production. The Atma Nirbhar Clean Plant Program, with a budget allocation of Rs 2200 crore, will offer farmers access to disease-free planting material and other facilities.

The government has taken several steps to promote startups in the country. Under the Startup India initiative, the Fund of Funds for Startups (FFS) scheme, Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) are implemented to provide capital at various stages of the business cycle of a startup.

Green power was at the forefront of the 2023 Union Budget. The government is particularly keen on promoting solutions and encouraging people to avoid using non-green energy solutions. Govt. announced numerous policies to promote less disastrous alternatives – The National Green Hydrogen Mission with an allocation of Rs. 19,700 crores and 35,000 Cr. for the energy transition.

There have been few technological enhancements as pivotal as AI. Recognizing the sheer value that greater integration of AI can add to the economy, the government will create a National Data Governance Policy that will allow access to anonymized data and set up three AI research centers.

Indirect Taxes and Custom Duties were relaxed 

Indirect taxes like GST and Customs form a significant part of the government’s revenue and deeply impact daily lives and manufacturing costs. Here below are the changes announced in the Union Budget 2023:

Goods and Services Tax: ITC will not be available regarding goods or services used for activities relating to corporate social responsibility.

Customs duty: As part of rate rationalization of the customs duty rate structure, BCD, SWS, and AIDC rates on several goods, other than textile and agriculture, will be reduced to 13% from 21%. Details are awaited for the list of items covered under the 13% slab.

Certain items like polished diamonds, chemicals needed for petroleum products, camera lenses for cellular mobile phones, and steel scrap have been reduced, and eventually, these items will get cheaper.

Other things that will become cheaper include parts of open cells of TV panels, Denatured ethyl alcohol used in the chemical industry, and compounded rubber.

FM extended customs duty on camera lenses and their inputs or parts for use in the manufacture of the cellular mobile phone camera module reduced to zero and concessional duty on lithium-ion cells for batteries for another year.

Increase in CAPEX to boost Indian Infra:

Infrastructure is the backbone of any economy. To ensure that India is as robust as possible, the government has increased the capital expenditure allocation to Rs. 10 lakh crore, a massive 33% increase. It will significantly benefit logistics-heavy businesses and sectors in India and make transportation less hassle for Indian entrepreneurs. Reduction in logistics costs will give a much-needed boost to commerce in Tier 2 and 3 cities. 

Stepping into the future

Looking at the Union Budget 2023 highlights, the government has pushed financial inclusion and digitalization of finances across industries. In this Union Budget, the FM extended financial aid to businesses, digitalized the agriculture industry, relaxed many business regulations to attract FDI, and boosted capital expenditure to support business growth. In summary, the budget is aspirational and grounding, with a plan for sustainable development and making India an economic superpower. 

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ECLGS scheme stopped Rs 2 trn MSME loans from turning bad: SBI report#ECLGS #scheme #stopped #trn #MSME #loans #turning #bad #SBI #report

Around 12 per cent (Rs 2.2 trillion) of the outstanding MSME credit has been saved from slipping into bad loans because of the Emergency Credit Line Guarantee Scheme (ECLGS) launched by the government during the pandemic, thus saving 16.5 million jobs till November, 2022, according to estimates by the State Bank of India. “Of the 1.46 million MSME (Micro, Small and Medium Enterprises) accounts…

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Anurag Batra Expresses His Views - Growth of Hotel Industry After the Covid Stricken Years

Anurag Batra BW is a serial entrepreneur, media mogul, a journalist and an eternal optimist rolled into one. Since taking over BW Businessworld, Mr. Batra has expanded BW Businessworld into digital, events and BW communities and has taken into its fold digitalmarket, a leading website on digital marketing, www.everythingexperiential.com India’s leading experiential marketing website and launch BW Hotelier in partnership with hotelier international.

Anurag Batra is also appointed by Government of India as the Chairman of an industry committee formed to come up with a vocational training framework for the media, communication and entertainment industry. Annurag Batra, Chairman & Editor-in-Chief of BW Businessworld & Founder and Editor-in Chief of exchange4media Group enunciates his views on how after a horrid two years, the hotel industry is well on the road to profitability.

At long last a consistent uptick in travel, both domestic and international, is enabling the revival of the travel and hospitality sector in India. With more people travelling within the country, affiliated businesses are seeing a big uptick too. According to Dr. Annurag Batra, this is good news for the tourism and hospitality sector that is among the largest employment generators in India. It is a sector that brings in significant foreign exchange earnings and foreign tourist arrivals are steadily on the rise, with each passing month bringing more overseas into the country.

The latest cover story package by Mr. Anurag Batra and BW Businessworld captures the resurgence of the hotel industry that seems to be jogging back towards profitability after the major lows of the pandemic-induced lockdowns and the resultant closures, lay-offs and financial losses. “For the first quarter (April-May-June), all key operating metrics of the hospitality sector, including the Revenue per available room (RevPAR), Average Room Rate (ARR), and Occupancy Room Rate (ORR), were way ahead of the pre-pandemic levels”, Anurag Batra highlights in his latest article.

The expert also points out that metro cities like Mumbai, Delhi and others, saw record occupancy levels According to HVS ANAROCK, a leading hospitality consulting and transaction advisory joint venture, the ORR and ARR have been able to sustain over the pre-pandemic levels in the first quarter of FY 2022-23, indicating a strong recovery. The pan-India occupancies in June 2022 reached the 65 per cent mark (three per cent up from June 2019) along with higher ARR at Rs 5,850 (10 per cent up from June 2019), Mr. Anurag Batra says.

“The report says that the RevPAR also improved 13 per cent compared to the pre-pandemic levels for the month. The Indian Hotels Company (IHCL), the country's largest hospitality player with a presence in more than 100 centres, reported its best first quarter in the company’s history. Other listed hotel companies also posted robust financial performances for the first quarter, riding on the back of a resurgence in the travel segment”, Anurag Batra, Editor-in-Chief of the BW Businessworld Group highlights in his latest editor’s report.

Sensing an on-ground turnaround of the hospitality sector, the Union Cabinet recently approved a proposal to raise the Emergency Credit Line Guarantee Scheme limit for the travel, tourism and hospitality sectors. In this special feature package Anurag Batra Businessworld Group also spotlight the corresponding turnaround in the business of online travel agencies. Dr. Anurag Batra take an in-depth look at the remarkable turnaround of MakeMyTrip in the last two years and take stock of the company’s growth plans and new strategies. The article concludes with the insightful interview of Dr. Anurag Batra with the Co-promoter of EaseMyTrip that had made a successful IPO last year.

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Market this week 7-10-2022

Market this week 7-10-2022

SpiceJet increases as the government increases the borrowing cap for airlines under the credit programme. On October 6, the finance ministry changed the Emergency Credit Line Guarantee Scheme (ECLGS), increasing the lending cap from Rs 400 crore to Rs 1,500 crore in order to support the aviation industry. As a result, shares of low-cost airline SpiceJet increased. The updated ECLGS 3.0 states…

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Govt enhances ECLGS for aviation sector to Rs 1,500 cr

The Emergency Credit Line Guarantee Scheme (ECLGS) has extended the loan amount qualifying for the aviation sector to 100% of their fund-based or non-fund-based loan, or Rs. 1,500 crore, whichever is lesser.