The Indian government has approved a ₹5,000 crore emergency relief package for the aviation sector under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, providing a major financial lifeline to airlines grappling with rising operational costs linked to the ongoing West Asia crisis.
The scheme comes amid a sharp spike in aviation turbine fuel (ATF) prices, currency volatility, and longer flight routes caused by restricted airspace over conflict-hit regions. Airlines have increasingly faced pressure on profitability, with some carriers already trimming international operations due to mounting costs.
Under the revised framework, eligible airlines can avail loans of up to ₹1,000 crore, with an additional ₹500 crore linked to matching equity infusion. The loans will carry a tenure of up to seven years, including a two-year moratorium on repayments, aimed at easing short-term liquidity pressures.
The Centre stated that the move is intended to preserve connectivity, support jobs, and stabilize the aviation ecosystem during the ongoing geopolitical turbulence.
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