Airlines set for INR 5,000 cr. credit lifeline via ECLGS variant; to cushion the industry from the impact of the West Asia crisis

India is expected to cushion the impact of the West Asia crisis on its airline industry by allocating around ₹5,000 crore under a proposed new version of the Emergency Credit Line Guarantee Scheme (ECLGS). Accordingly, the airline portion of the proposed scheme is expected to run for five years, with up to ₹1,000 crore that can be allotted per airline. The allotment can be extended by a further ₹500 crore if the promoter also puts in ₹500 crore. The proposed new scheme is expected to cushion the industry from the pressures arising from the West Asia crisis. Notably, the allocation for airlines is part of a broader proposal for a ₹2.5 lakh crore credit guarantee scheme being considered amid the impact of the West Asia war. The Union Cabinet is expected to soon take a call on the scheme to support various sectors affected by the crisis, as per a report.