Maximum credit airlines can claim increased from ₹400 crore to ₹1,500 crore
Maximum credit airlines can claim increased from ₹400 crore to ₹1,500 crore
The Ministry of Finance has increased the credit limit available to airlines under the Emergency Line of Credit Guarantee Scheme (ECLGS), making them eligible for a sum equivalent to 100% of their outstanding debt, up to at ₹1,500 crore.
Previously, airlines could borrow up to 50% of their outstanding credit up to ₹400 crore. This is the second time the government has liberalized the regime for the aviation sector.
The program introduced for medium and small businesses during the outbreak of the COVID-19 pandemic has been extended until March 2023 and its warranty coverage has been extended from ₹50,000 crore to ₹5 lakh crore.
SpiceJet, which has raised over ₹300 crore under the scheme and is exploring several options to raise more funds, welcomed the government’s decision. “This will give the airlines a tremendous boost. I am once again asking the government for their support in including aviation jet fuel in the GST as a game-changer for the whole industry,” airline chairman and chief executive Ajay Singh said in a statement. a statement.
“Given exchange rate volatility, high fuel prices and recession fears in some of the world’s major economies, the aviation sector continues to come under extreme pressure,” said Deepak Sood, Secretary General. Associated Chambers of Commerce and Industry of India.
“The earlier decision to extend the ECLGS until March 2023 as well as the latest announcement of its liberalization would go a long way to restoring financial stability to airlines,” he added.
