India may clear ₹5,000 crore credit relief for airlines as stress deepens – CNBC TV18
The Indian government is weighing a ₹5,000 crore relief package for airlines under the Emergency Credit Line Guarantee Scheme (ECLGS), with a proposal likely to be placed before the Cabinet this week, sources told CNBC-TV18.
The move comes as financial stress in the aviation sector intensifies, with rising cost pressures linked to the prolonged US-Iran conflict weighing on airline balance sheets.
According to sources, the scheme is aimed at easing liquidity constraints, particularly for cash-strapped carriers, through government-backed emergency credit support.
Officials are also considering a cap on the amount each airline can avail under the scheme, to ensure wider distribution of funds across the sector.
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The proposed relief is expected to be routed through the ECLGS, under which the government provides guarantees to banks for extending credit to stressed sectors.
The Emergency Credit Line Guarantee Scheme (ECLGS) was introduced to provide collateral-free loans backed by government guarantees, aimed at supporting businesses facing financial strain.
A final decision on the contours of the scheme is expected once the proposal is taken up by the Cabinet.
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