Mumbai, June 16 -- The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 is expected to provide timely relief to companies grappling with higher working capital requirements arising from disruptions caused by the ongoing West Asia conflict, according to a report by CRISIL Ratings.

The rating agency said the conflict has disrupted global supply chains, pushed up crude-linked input costs and stretched trade cycles, leading to elevated working capital needs across industries.

The scheme, which became effective last month and has an outlay of Rs 2.55 lakh crore, is expected to support both micro, small and medium enterprises (MSMEs) and non-MSMEs facing near-term liquidity pressures.

Under ECLGS 5.0, eligible standard borrowers can avail ...