New Delhi, April 4 -- The Government of India is working on a Rs2-2.5 lakh crore credit guarantee scheme to support businesses facing stress due to the ongoing geopolitical tensions in West Asia, according to sources.

The proposed scheme aims to ensure liquidity, stabilise industries, and cushion the economic impact of rising oil prices, supply chain disruptions, and global uncertainty, reported The Economic Times.

Modelled on Pandemic-Era Scheme

The new initiative is likely to be structured on the lines of the Emergency Credit Line Guarantee Scheme (ECLGS) introduced during the COVID-19 pandemic.

It may offer 100 percent government-backed, collateral-free loans. Target beneficiaries are expected to include MSMEs and other affected se...