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Low-cost airline SpiceJet has welcomed the changes made in the Emergency Credit Line Guarantee Scheme (ECLGS) for the civil aviation sector but has asked the government to extend support on jet fuel as well.
“This will provide a tremendous boost for airlines. I request the government once again for its support for including Aviation Turbine Fuel under GST, which would be a game changer for the entire sector,” Ajay Singh, Chairman and Managing Director, SpiceJet said.
The airline expects to receive an additional ₹1000 crore as part of the modified Emergency Credit Line Guarantee Scheme (ECLGS), a company official said on condition of anonymity. The airline is in need of funds to sustain heavy cost burden and pay pending dues.
The airline has also been in discussions with bankers to raise $200 million, the official added.
The finance ministry today said that it has modified the Emergency Credit Line Guarantee Scheme (ECLGS) to enhance the maximum loan amount eligibility for airlines under ECLGS 3.0 to 100% 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 owner.
The modifications introduced are aimed to provide necessary collateral-free liquidity at reasonable interest rates to tide over their present cash flow problems.
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John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
