Govt modifies credit scheme for civil aviation sector

The government has modified the collateral-free emergency credit line guarantee scheme (ECLGS) extending the cheaper loan facility to the civil aviation sector to tide over their current cash-flow problems, an official statement said on Wednesday.

Recognising that “an efficient and strong civil aviation sector is vital for the economic development” of the country, the department of financial services (DFS), an arm of the finance ministry, modified ECLGS on Tuesday, it said.

It decided to enhance the maximum loan amount eligibility for airlines under ECLGS to 100% of their loan outstanding or ₹1,500 crore, whichever is lower, and of the above, ₹500 crore shall be considered, based on equity contribution by the owners, the statement added.