Coimbatore Industry Welcomes ECLGS 5.0 Support
Textile industry bodies and MSME associations in Coimbatore have welcomed the introduction of the Emergency Credit Linked Guarantee Scheme (ECLGS) 5.0, stating that it will provide critical liquidity support to businesses facing challenging global conditions.
Southern India Mills’ Association Chairman Durai Palanisamy said the textile industry has been struggling with inadequate working capital required to sustain manufacturing operations, retain workforce, procure raw materials and service bank loans. He described ECLGS 5.0 as a timely initiative that would support businesses impacted by recent global disruptions, particularly the West Asia crisis.
Under the scheme, MSME and non-MSME sectors can avail additional credit of up to 20 per cent of peak working capital as of Q4 FY26, subject to a maximum limit of Rs 100 crore per borrower. The loans will be fully collateral-free, carry no guarantee fee and have a repayment tenure of up to five years, including a one-year moratorium on principal repayment. Loan sanctions will remain open until March 31 next year.
Palanisamy added that ECLGS 5.0, along with initiatives such as the TEEM scheme and the Mission for Cotton Productivity, would strengthen the textile sector’s competitiveness in domestic and global markets.
Meanwhile, Coimbatore District Small Industries Association President M. Karthikeyan said the scheme would help businesses overcome cash flow pressures. He also urged the government to increase the scheme’s credit allocation from Rs 2.55 lakh crore to Rs 6.5 lakh crore considering the scale of MSMEs operating across the country.
