Last Updated: May 31, 2021, 0955 hrs

On Sunday the government announced extending the Emergency Credit Line Guarantee Scheme to the civil aviation sector, with the aim to provide a liquidity solace for the pandemic-hit segment.

Civil Aviation Minister Hardeep Singh Puri said airlines, airports, air ambulances can avail additional funding facility under the ECLGS which will help alleviate their ”stressed cash flows”.

Referring to the ECLGS (Emergency Credit Line Guarantee Scheme) 3.0 wherein aviation sector was included on Sunday, the minister said that it can help civil aviation meet their working capital term loan and additional term loan needs.

In March, ECLGS 3.0 was introduced to cover business enterprises in hospitality, travel and tourism, leisure and sporting sectors.

The ministry has also removed the current ceiling of Rs 500 crore of loan outstanding for eligibility under ECLGS 3.0, subject to maximum additional ECLGS assistance to each borrower being limited to 40 per cent or Rs 200 crore, whichever is lower.

Industry players and various stakeholders said the ”timely” decision to include the aviation sector under the Emergency Credit Line Guarantee Scheme (ECLGS), which was announced in May last year, will ease the pressure and provide the much-needed liquidity.

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