Aviation Ministry seeks to double the loan outstanding limit under ECLGS

The Aviation Ministry has reached out to the Finance Ministry to double the current funding support given to the sector. According to people in the know,  the Aviation Secretary, Rajiv Bansal, has written to the Finance Ministry for doubling the ECLGS (Emergency Credit Line Guarantee Scheme) loan outstanding limit to 100 percent from the current 50 percent.

If approved, airlines will be allowed to avail of additional debt of up to 100 percent of their outstanding credit, subject to a cap of Rs 1,500 crore.

It is learnt that the ask is due to the sharp rise in jet fuel price and the devaluation of the rupee against the dollar which in turn has increased the operating cost of the sector.