In a move to help the cash-strapped aviation sector, the government has modified the norms to allow airlines to avail themselves of loans up to 100 per cent of their requirement under the Emergency Credit Line Guarantee Scheme (ECLGS).
Version 3.0 of the scheme has been modified to enhance “the maximum loan amount eligibility for airlines to 100 per cent of their fund-based or non-fund-based loan outstanding as on the reference dates or Rs 1,500 crore, whichever is lower; and of the above, Rs 500 crore shall be considered, based on equity contribution by the owners,” the finance ministry statement on Wednesday said.
Previously, civil aviation companies were allowed to borrow up to 50 per cent of their highest fund-based credit outstanding, subject to a maximum of Rs 400 crore per borrower, as against 40 per cent of their credit outstanding as part of earlier iterations of the ECLGS scheme.
