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Cabinet approves Emergency Credit Line Guarantee Scheme 5.0

Published By : Admin | May 5, 2026 | 18:48 IST
To provide credit guarantee coverage through National Credit Guarantee Trustee Company Limited to Member Lending Institutions for extending additional credit support to eligible business borrowers in view of West Asia situation
Targets total additional credit flow of Rs.2,55,000 crore (including Rs.5,000 crore for airlines)

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. The scheme aims to provide credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs as well as airline sector, to Member Lending Institutions (MLIs) by National Credit Guarantee Trustee Company Limited (NCGTC) for the amount in default under the additional credit facility extended to the eligible borrowers to tide over any short-term liquidity mismatches in view of West Asia Crisis.

Salient features of the scheme:

  • Eligible borrowers: MSMEs and non-MSMEs with existing working capital limits and scheduled passenger airlines having outstanding credit facilities, as of March 31, 2026, provided their accounts are standard.
  • Guarantee coverage: 100% for MSMEs and 90% for non-MSMEs as well as airline sector.
  • Guarantee Fee: Nil.
  • Quantum of Support: Additional credit up to 20% of peak working capital utilised during Q4 FY 26 (capped at Rs.100 crore). For airlines up to 100% (capped at Rs.1,500 crore per borrower, subject to satisfying certain specific conditions).
  • Tenor of Loan:
  • For MSMEs/Non MSMEs (except Airline sector): 5 years from the date of first disbursement including moratorium of 1 year.
  • For airline sector: 7 years from the date of first disbursement including moratorium of 2 years.
  • Tenure of Guarantee Cover: Maximum period of guarantee cover shall be co-terminus with the tenor of the loan.
  • Duration of the Scheme: The Scheme would be applicable to all loans sanctioned during the period from the date of issue of these guidelines by NCGTC upto 31.03.2027

Impact:

The scheme aims to enable businesses to tide over the challenges arising from the West Asia conflict. Additionally, this is expected to help businesses maintain their operations, protect jobs, and sustain supply chains. The proposed credit guarantee scheme is a major step to help businesses, particularly MSMEs and airline sector, to ensure their additional working capital needs, are catered by the Banks & FIs. 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.

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Cabinet approves increase in the Judge strength of the Supreme Court of India by Four to 37 from 33
May 05, 2026

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today has approved the proposal for introducing The Supreme Court (Number of Judges) Amendment Bill, 2026 in Parliament to amend The Supreme Court (Number of Judges) Act, 1956 for increasing the number of Judges of the Supreme Court of India by 4 from the present 33 to 37 (excluding the Chief Justice of India).

Point-wise details:

Supreme Court (Number of Judges) Amendment Bill, 2026 provides for increasing the number of Judges of the Supreme Court by 04 i.e. from 33 to 37 (excluding the Chief Justice of India).

Major Impact:

The increase in the number of Judges will allow Supreme Court to function more efficiently and effectively ensuring speedy justice.

Expenditure:

The expenditure on salary of Judges and supporting staff and other facilities will be met from the Consolidated Fund of India.

Background:

Article 124 (1) in Constitution of India inter-alia provided “There shall be a Supreme Court of India consisting of a Chief Justice of India and, until Parliament by law prescribes a larger number, of not more than seven other Judges…”.

An act to increase the Judge strength of the Supreme Court of India was enacted in 1956 vide The Supreme Court (Number of Judges) Act 1956. Section 2 of the Act provided for the maximum number of Judges (excluding the Chief Justice of India) to be 10.

The Judge strength of the Supreme Court of India was increased to 13 by The Supreme Court (Number of Judges) Amendment Act, 1960, and to 17 by The Supreme Court (Number of Judges) Amendment Act, 1977. The working strength of the Supreme Court of India was, however, restricted to 15 Judges by the Cabinet, excluding the Chief Justice of India, till the end of 1979, when the restriction was withdrawn at the request of the Chief Justice of India.

The Supreme Court (Number of Judges) Amendment Act, 1986 further augmented the Judge strength of the Supreme Court of India, excluding the Chief Justice of India, from 17 to 25. Subsequently, The Supreme Court (Number of Judges) Amendment Act, 2008 further augmented the Judge strength of the Supreme Court of India from 25 to 30.

The Judge strength of the Supreme Court of India was last increased from 30 to 33 (excluding the Chief Justice of India) by further amending the original act vide The Supreme Court (Number of Judges) Amendment Act, 2019.