Maximum credit airlines demand has been increased from ₹400 crore to ₹1,500 crore
Maximum credit airlines demand has been increased from ₹400 crore to ₹1,500 crore
The Finance Ministry has increased the credit limit available to airlines under the Emergency Credit Line Guarantee Scheme (ECLGS), making them eligible for an amount equal to 100% of their outstanding loans to ₹1,500 crore.
Earlier, airlines were eligible to borrow up to 50% of their outstanding credit up to ₹400 crore. This is the second time that the government has liberalized the scheme for the aviation sector.
The scheme launched for medium and small enterprises during the outbreak of the COVID-19 pandemic was extended till March 2023 and its guarantee cover was increased by ₹50,000 crore to ₹5 lakh crore.
SpiceJet, which has raised over Rs 300 crore under the scheme and is looking at various options to raise more funds, welcomed the government’s decision. “This will provide a tremendous boost for the airlines. Ajay Singh, chairman and managing director of the airline, said in a statement, “I once again request the support of the government to include Aviation Turbine Fuel under GST, which will be a game changer for the entire sector.”
“Given the volatility in foreign exchange rates, high fuel prices and fears of a slowdown in some of the world’s major economies, the aviation sector remains under immense pressure,” said Deepak Sood, secretary general of the Associated Chambers of Commerce. Industry of India.
“The latest announcement of its liberalization along with the earlier decision to extend the ECLGS till March 2023 will go a long way in restoring the financial stability of the airlines,” he said.