ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
Contents
Source: The post is based on the article “Centre raises credit limit under ECLGS for airlines to 100% of debt up to ₹1,500 cr.” published in The Hindu on 6th October 2022.
What is the News?
The Ministry of Finance has raised the credit limit for airlines under the Emergency Credit Line Guarantee Scheme (ECLGS). This is the second time the government has liberalised the scheme for the aviation sector.
What is the need for the liberalisation of ECLGS?
Given the volatility in foreign exchange rates, high fuel prices and the recessionary fears in some of the key economies of the world, the aviation sector continues to remain under extreme pressure. So, the government has liberalised the ECLGS.
What is an “Emergency Credit Line Guarantee Scheme”?
The scheme introduced for medium and small enterprises during the outbreak of the COVID-19 pandemic was extended till March 2023 and its guarantee cover expanded by ₹50,000 crores to ₹5 lakh crore.
| Read here: “Emergency Credit Line Guarantee Scheme” |
What are the major changes in the ECLGS?
Earlier, airlines were eligible to borrow up to 50% of their credit outstanding up to ₹400 crores. But from now on they are eligible for a sum equivalent to 100% of their outstanding debt, up to a maximum of ₹1,500 crores.
