Stories
Airlines Urge Faster ECLGS 5.0 Fund Release Amid Liquidity Crunch
- •The Federation of Indian Airlines urged Civil Aviation Minister K Rammohan Naidu to fast-track fund disbursement under the Emergency Credit Line Guarantee Scheme 5.0.
- •Airlines like IndiGo, Air India, and SpiceJet face urgent liquidity needs, but lending institutions are hesitant to release balance sanctioned amounts.
- •SpiceJet has already availed Rs 150 crore under the scheme and is currently awaiting another tranche of Rs 350 crore.
- •The ECLGS 5.0 scheme remains operational until March 2027 or until guarantees amounting to Rs 2.55 lakh crore are issued.
Key Questions Answered
Airlines represented by the Federation of Indian Airlines are facing urgent liquidity needs and have urged Civil Aviation Minister K Rammohan Naidu to help speed up the disbursement of balance amounts under ECLGS 5.0. While some assistance has been received, further releases have been delayed due to hesitation from lending institutions.
Sources indicate that SpiceJet, which has faced multiple headwinds, has already availed Rs 150 crore under the ECLGS 5.0 scheme and is currently awaiting another tranche of Rs 350 crore.
The ECLGS 5.0 scheme is operational until March 2027 or until guarantees amounting to Rs 2.55 lakh crore are issued, whichever comes first. Out of this overall initiative, a specific allocation of Rs 5,000 crore has been earmarked for scheduled passenger airline companies.
