Government amends credit scheme to help airlines stay afloat

NEW DELHI: In a lifeline for struggling-to-survive Indian carriers, the government has modified the emergency credit line guarantee scheme (ECLGS) to enhance the maximum loan amount eligibility for them to 100% of their outstanding loans or Rs 1,500 crore, whichever is lower, subject to certain conditions. Hit by Covid, airlines here had been reeling under high jet fuel prices and rupee’s free-fall — with a large part of airlines’ expenses being dollar-denominated.

Sources in SpiceJet — which has for months not been able to pay employees’ PF or deposit their tax deducted at source with authorities due to a paucity of funds — say the budget airline may get an additional Rs 1,000 crore under the amended scheme. This will “rejuvenate SpiceJet, help clear all statutory dues,lessor payments, induct new Boeing 737 MAX aircraft and settles the survivability debate once and for all,” they add.