NEW DELHI : Cash-strapped Indian carriers have asked the government to set up an interest-free line of credit of at least $1.5 billion for the aviation sector, civil aviation minister Hardeep Singh Puri said on Wednesday.
He said the airlines have also sought a six-month deferment of their loan repayments by banks and financial institutions, while not treating it as bad loans. Puri was responding to queries from Trinamool Congress member of Parliament Derek O’Brien in the Rajya Sabha.
Airlines have also asked the government to bring jet fuel under the ambit of the Goods and Services Tax (GST), removing the current 11% excise duty on jet fuel, facilitating of additional unsecured credit for 60 days on jet fuel purchases from oil marketing companies and deferment of tax and other statutory dues for a period of six months, the minister said in a written reply.
