Government Approves Rs 5,000 Crore Emergency Credit Scheme for Airlines | India News
An airline can get up to Rs 1,500 crore under this measure. For the airline sector, the tenure of this loan will be seven years with a moratorium of two years from the date of first disbursement.While IndiGo and Tata Sons’ Air India group have the assets to weather the perfect storm — a tumbling rupee as jet fuel prices skyrocket and a significant portion of their operating costs are dollar-denominated, — many other vulnerable players are struggling to survive. For example, an airline is now unable to pay salary, PF or even TDS for a long time. This ECLGS can provide them some liquidity and avoid shutdown for now.“Eligible borrowers: MSMEs and non-MSMEs with existing working capital limits and scheduled passenger airlines having outstanding credit facilities till March 31, 2026, if their accounts are standard… Additional credit availed up to 20% of peak working capital in 204 FY 26 (capped at Rs 100 to 100 crore). Borrowers, fulfilling certain conditions. subject to),” a government statement said.“The aim of the scheme is to enable businesses to address the challenges arising from the conflict in West Asia. Further, it is expected to help businesses maintain their operations, protect jobs and sustain supply chains. The proposed credit guarantee scheme is a major step in helping businesses, especially the MSME and airline sector, to ensure their additional working capital needs are met by banks and institutions. By providing timely liquidity, the scheme will sustain businesses and prevent job losses,” the statement added.
