Representative image NEW DELHI: Indian carriers have got a Rs 5,000-crore lifeline during the debilitating Iran war that has led to a sharp hike in operating cost along with a decrease in passenger numbers. The Union Cabinet chaired by PM Modi on Tuesday approved the emergency credit line guarantee scheme (ECLGS) 5.0 to provide credit guarantee coverage to several sectors, including airlines. Targeting an overall additional credit flow of over Rs 2.5 lakh crore for various sectors, this will allow “eligible borrowers to tide over any short-term liquidity mismatches in view of West Asia crisis.”An airline can get upto Rs 1,500 crore under this move. For airline sector, the tenor of this loan will be seven years from the date of first disbursement including moratorium of two years.While IndiGo and Tata Sons’ Air India group have the resources to weather the perfect storm — sharp rise in jet fuel price and the rupee crashing with a significant part of their operating costs being dollar-denominated, — many other weaker players are struggling to survive. One airline, for instance, is unable to pay salaries, PF or even TDS on time for a long time now. This ECLGS could provide them some liquidity and avert a shutdown for now.“Eligible borrowers: MSMEs and non-MSMEs with existing working capital limits and scheduled passenger airlines having outstanding credit facilities, as of March 31, 2026, provided their accounts are standard…. Additional credit up to 20% of peak working capital utilised during Q4 FY 26 (capped at Rs 100 crore). For airlines up to 100% (capped at Rs 1,500 crore per borrower, subject to satisfying certain specific conditions),” said a government statement.“The scheme aims to enable businesses to tide over the challenges arising from the West Asia conflict. Additionally, this is expected to help businesses maintain their operations, protect jobs, and sustain supply chains. The proposed credit guarantee scheme is a major step to help businesses, particularly MSMEs and airline sector, to ensure their additional working capital needs, are catered by the banks & financial institutions. By providing timely liquidity, the scheme will sustain the businesses and prevent job losses,” the statement added.Follow the latest election results 2026, live updates, winner lists, constituency-wise results, party-wise trends and full coverage for Tamil Nadu election results, West Bengal election results, Kerala election results, Assam election results and Puducherry election results results on Times of India.End of ArticleFollow Us On Social MediaVideosIndia Seeks To Lease Three Ultra Heavy Lift Helicopters To Boost CapabilityAIMIM Chief Owaisi Says Muslim Votes Wasted on Secular Parties, Calls for ShiftKejriwal Alleges BJP “Robbed” Punjab of Rajya Sabha Seats, Vows Political Revenge“Democracy Being Mocked”: Bhagwant Mann Meets President Over Defection of 7 AAP Rajya Sabha MPsNCERT Clears Revised Class 8 Textbook After Judiciary Chapter Row And Public ApologyPM Modi call Fujairah Attack ‘Unacceptable’, Three Indians Injured In UAEPunjab Showdown: AAP MLAs Head to President Over Rajya Sabha RowIndia Rejects Nepal’s Objection To Kailash Mansarovar Yatra Route Via Lipulekh PassNepal Objects To India-China Plan To Conduct Kailash Mansarovar Yatra Via LipulekhIndia-Linked LPG Tanker MT Sarv Shakti Heads To Visakhapatnam After Crossing Hormuz123PhotostoriesGreater Noida’s top 5 real estate hotspots fuelled by the upcoming Jewar AirportThe ‘Big Four’ snakes of India and where travellers can spot them in the wildFrom ‘Leo’ to ‘Master’: Looking at ‘Jana Nayagan’ star Vijay Thalapathy’s biggest box office blockbustersThis mountain range is the oldest in India—and older than dinosaurs: 5 stunning facts5 Met Gala 2026 looks that turned famous paintings into iconic fashion moments5 simple and mindful steps for office goers to grow jade plants that attract prosperity and positivityWhat really happens when you drink Beetroot juice every day for a weekBEST quotes by Farah Khan that show her unfiltered HONESTY and BOLD take on BollywoodTop 8 trending art styles to decorate your apartment in 20265 popular and adorable cat breeds for pet parents123Hot PicksBarrackpore election resultTiruchirappalli election resultMettupalayam election resultsEttumanoor election resultPerambur election resultBagnan election resultKazhakkoottam election resultTop TrendingIran warRahul GandhiBadruddin AjmalIPL Playoff Qualification ScenariosIPL 2026 Points TableMI IPL Playoff Qualification ScenariosPM ModiNEET 2026: Exam-day guideSRMJEEE 2026 Phase 1 ResultTVK Chief Vijay
NEW DELHI: Indian carriers have got a Rs 5,000-crore lifeline during the debilitating Iran war that has led to a sharp hike in operating cost along with a decrease in passenger numbers. The Union Cabinet chaired by PM Modi on Tuesday approved the emergency credit line guarantee scheme (ECLGS) 5.0 to provide credit guarantee coverage to several sectors, including airlines. Targeting an overall additional credit flow of over Rs 2.5 lakh crore for various sectors, this will allow “eligible borrowers to tide over any short-term liquidity mismatches in view of West Asia crisis.”An airline can get upto Rs 1,500 crore under this move. For airline sector, the tenor of this loan will be seven years from the date of first disbursement including moratorium of two years.While IndiGo and Tata Sons’ Air India group have the resources to weather the perfect storm — sharp rise in jet fuel price and the rupee crashing with a significant part of their operating costs being dollar-denominated, — many other weaker players are struggling to survive. One airline, for instance, is unable to pay salaries, PF or even TDS on time for a long time now. This ECLGS could provide them some liquidity and avert a shutdown for now.“Eligible borrowers: MSMEs and non-MSMEs with existing working capital limits and scheduled passenger airlines having outstanding credit facilities, as of March 31, 2026, provided their accounts are standard…. Additional credit up to 20% of peak working capital utilised during Q4 FY 26 (capped at Rs 100 crore). For airlines up to 100% (capped at Rs 1,500 crore per borrower, subject to satisfying certain specific conditions),” said a government statement.“The scheme aims to enable businesses to tide over the challenges arising from the West Asia conflict. Additionally, this is expected to help businesses maintain their operations, protect jobs, and sustain supply chains. The proposed credit guarantee scheme is a major step to help businesses, particularly MSMEs and airline sector, to ensure their additional working capital needs, are catered by the banks & financial institutions. By providing timely liquidity, the scheme will sustain the businesses and prevent job losses,” the statement added.