Govt to Inject ₹5,000 Crore into Aviation Sector via ECLGS to Ease Financial Crunch

To alleviate the severe financial pressure on the aviation transport sector, the government is planning to provide financial assistance of ₹5,000 crore to aviation companies under the Emergency Credit Line Guarantee Scheme (ECLGS).
Due to the long-standing conflict between America and Iran, the rising cost of fuel has further strained the financial health of aviation institutions. Under this scheme, the government is considering setting a limit on the amount of funds each aviation institution can receive.
A proposal to provide this ₹5,000 crore assistance is likely to be presented before the Cabinet soon. It is noteworthy that the Emergency Credit Line Guarantee Scheme was originally launched to provide collateral-free loans to help businesses facing financial stress.