New Delhi: The low-cost airline on Wednesday said SpiceJet is working on reviving 25 grounded aircraft and it will avail funds from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) scheme.
The announcement by SpiceJet comes a day after go first announced that it has filed an application with the National Company Law Tribunal (NCLT) for insolvency proceedings.
“SpiceJet has drawn up its plan to revive the 25 grounded aircraft. Funds for the revival will be drawn from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and improved cash accumulations,” it said in a statement.
The Center has launched ECLGS in May, 2020 as part of the Atmanirbhar Bharat Abhiyaan to enable eligible Micro, Small and Medium Enterprises (MSMEs) and business enterprises to meet their operational liabilities and recover from the disruption caused by the COVID pandemic. Get help restarting your business.
In October 2022, the finance ministry revised the scheme to increase the maximum loan amount eligibility for airlines to 100 per cent of their “fund-based or non-fund-based loan outstanding as on the reference dates or Rs 1,500 crore”.
“The amendments introduced are aimed at giving the necessary collateral-free liquidity at reasonable interest rates to tide over their current cash flow problems,” the ministry said.
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On Wednesday, SpiceJet said it has “already raised around Rs 400 crore to get the grounded fleet back in the air, which will further boost its top-line”.
“We are carefully working towards getting our grounded fleet back in the air soon. Most of the ECLGS funding received by the airline will be used for the same, which will help us capitalize and maximize the upcoming peak travel season. SpiceJet Chairman and Managing Director Ajay Singh said in the statement.
(Edited by Tony Rae)
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