PIB Summary- 6th October, 2022 | PIB (Press Information Bureau) Summary - UPSC PDF Download

Quality Council of India

Why in News?
The Quality Council of India is set to celebrate its Silver Jubilee at the Ambedkar International Centre in New Delhi with a special event intended to share India’s journey of growth, accelerated by the enhancement of quality. 

• QCI launches a marquee campaign–‘Gunvatta Se Atmanirbharta’ to celebrate India’s commitment to quality

Quality Council of India (QCI)

• Quality Council of India (QCI) was set up in 1997 as an autonomous body.
• It was setup jointly by the Government of India and the Indian Industry represented by the three premier industry associations i.e.
  • Associated Chambers of Commerce and Industry of India (ASSOCHAM),
  • Confederation of Indian Industry (CII) and
  • Federation of Indian Chambers of Commerce and Industry (FICCI)
• It aims to establish and operate national accreditation structure and promote quality through National Quality Campaign.
• The Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, is the nodal ministry for QCI.
• Chairman of QCI is appointed by the Prime Minister on recommendation of the industry to the government.

Emergency Credit Line Guarantee Scheme

Why in News?
Recognising that an efficient and strong civil aviation sector is vital for the economic development of the country, 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 fund based or non-fund-based loan outstanding.

About Emergency Credit Line Guarantee Scheme (ECLGS)

• Emergency Credit Line Guarantee Scheme (ECLGS) was announced as part of the Atma Nirbhar Bharat Package in 2020
• Objective: to help businesses including MSMEs to meet their operational liabilities and resume businesses in view of the distress caused by the COVID-19 crisis, by providing Member Lending Institutions (MLIs).
• It provides 100% guarantee coverage  against any losses suffered by them due to non-repayment of the ECLGS funding by borrowers by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. 3 lakh crore to eligible MSMEs and interested MUDRA borrowers.
• The credit will be provided in the form of a Guaranteed Emergency Credit Line (GECL) facility.
• Tenor of the loan under Scheme shall be four years with a moratorium period of one year on the principal amount.
• No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
• Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.

Aims and objectives of ECLGS

• The Scheme aims at mitigating the economic distress faced by MSMEs by providing them additional funding in the form of a fully guaranteed emergency credit line.
• The main objective is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and NBFCs to increase access to, and enable the availability of additional funding facility to MSME borrowers.

The eligibility criteria for availing credit under ECLGS are

• For ECLGS 1.0; MSME units, Business Enterprises, Mudra Borrower and individual loans for business purpose having loan outstanding upto Rs.50 crore and days past due upto 60 days as on 29.02.2020.
• For ECLGS 2.0; Borrower belonging to 26 stressed sectors identified by Kamath Committee & Healthcare sector having loan outstanding above Rs.50 crore and upto Rs.500 crore and days past due upto 60 days as on 29.02.2020.
• For ECLGS 3.0; Borrower belonging to Hospitality, Travel & Tourism, Leisure & Sporting and Civil Aviation sector having days past due upto 60 days as on 29.02.2020.
• For ECLGS 4.0; Existing Hospitals/Nursing Homes/Clinics/Medical Colleges/units engaged in manufacturing of liquid oxygen, oxygen cylinders etc. having credit facility with a lending institution with days past due upto 90 days as on March 31, 2021.

Benefits of the ECLGS

• The scheme aims to mitigate the distress caused by COVID-19 and the consequent lockdown, which has severely impacted manufacturing and other activities in the MSME sector.
• The scheme is expected to provide credit to the sector at a low cost, thereby enabling MSMEs to meet their operational liabilities and restart their businesses.
• By supporting MSMEs to continue functioning during the current unprecedented situation, the Scheme is also expected to have a positive impact on the economy and support its revival.