The Ministry of Finance has enhanced the credit limit available to airlines under the Emergency Credit Line Guarantee Scheme (ECLGS), making them eligible for a sum equivalent to 100% of their outstanding debt, up to INR 1,500 crore, reports The Hindu.
Earlier, airlines were eligible to borrow up to 50% of their credit outstanding up to INR 400 crore. This is the second time the government has liberalised the scheme for the aviation sector.
The scheme introduced for medium and small enterprises during the outbreak of the COVID-19 pandemic was extended till March 2023, and its guarantee cover expanded by INR 50,000 crore to INR 5 lakh crore.
SpiceJet, which has raised more than INR 300 crore under the scheme and is looking at several options to raise more funds, welcomed the government’s decision. “This will provide a tremendous boost for airlines. I request the government once again for its support for including Aviation Turbine Fuel under GST, which would be a game changer for the entire sector,” the airline’s Chairman and MD Ajay Singh said in a statement. (Source: The Hindu)