Pioneer in short

Credit boost for airlines, MSMEs

The Union Government on Tuesday approved the Emergency Credit Line Guarantee Scheme (ECLGS 5.0) with an outlay of Rs 18,100 crore to support MSMEs and airlines facing financial stress due to the West Asia conflict. The scheme is expected to enable additional credit flow of around Rs 2.55 lakh crore, including Rs 5,000 crore earmarked for the airline sector. Information and Broadcasting Minister Ashwini Vaishnaw said the initiative is aimed at addressing liquidity pressures triggered by the ongoing conflict. Under the scheme, credit guarantee coverage of 100 per cent will be provided for MSMEs, while non-MSMEs and airlines will receive 90 per cent coverage through the National Credit Guarantee Trustee Company Ltd (NCGTC). Airlines will be eligible for loans up to 100 per cent of their peak credit, capped at Rs 1,500 crore.