Civil aviation brought under ECLGS ambit

Civil aviation minister Hardeep Singh Puri on Sunday said airlines, airports, air ambulances and airports can avail additional funding facility under the ECLGS which will help alleviate their “stressed cash flows”. 

Referring to the scheme, 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 a release, the finance ministry on Sunday said that on account of the disruptions caused by the second COVID wave to businesses across various sectors of the economy, it has been decided to enlarge the scope of ECLGS. The civil aviation sector will be eligible under ECLGS 3.0, it added. In March, ECLGS was introduced to cover business enterprises in hospitality, travel & tourism, leisure & sporting sectors. 

“To alleviate stressed cash-flows of scheduled & non-scheduled airlines, chartered flight operators, air ambulances & airports, an additional funding facility of upto 40% of their total credit outstanding, subject to a cap of ₹200 crore extended under ECLGS 3.0,” he said in a series of tweets. 

According to him, civil aviation entities can thus meet their working capital term loan and additional term loan needs from banks through fully government-guaranteed financial assistance with a tenor of up to six years. 

Operational guidelines have been issued by National Credit Guarantee Trustee Company Ltd on Sunday, he added.