Indian Government raises loan limit for operators reeling under cash-crunch

In a much-needed respite for smaller airlines like SpiceJet and Go First, the Indian Finance Ministry has expanded the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) to enhance the maximum loan amount eligibility for airlines under ECLGS 3.0. With this measure, airlines can avail of the necessary collateral-free liquidity at reasonable interest rates to tide over their present cash flow problems, according to an official statement by the ministry. Under the latest modification, 100% of the fund-based or non-fund-based loan outstanding as on the reference dates or INR 15bn, whichever is lower; and of the above, INR 5bn