- SpiceJet received Rs 150 crore under ECLGS 5.0 but awaits Rs 350 crore more
- Federation of Indian Airlines urged Civil Aviation Minister to expedite credit disbursal
- FIA requested ministry to guide banks for faster release of ECLGS 5.0 funds to airlines
SpiceJet has opted for the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 and has received an initial disbursement of Rs 150 crore, while the airline is yet to receive the remaining Rs 350 crore under the credit facility. This comes as the Federation of Indian Airlines (FIA) has written to the Civil Aviation Minister on Monday seeking the ministry's intervention to facilitate the expeditious disbursement of credit under ECLGS 5.0, according to a letter reviewed by NDTV Profit.
According to the letter reviewed by Profit, the industry body has also requested for support for its member airlines that wish to avail themselves of credit under the latest version of the scheme.
The FIA on Monday has requested the Ministry of Civil Aviation to provide guidance to participating banks to facilitate quicker disbursement of sanctioned credit under ECLGS 5.0. The industry body also added that timely access to liquidity would help airlines meet critical operational requirements as well as working capital needs.
The request by the industry body comes as airlines continue to require adequate liquidity to support day-to-day operations, including expenses related to aircraft operations, maintenance and other working capital requirements.
The FIA represents several major airlines, including Air India, SpiceJet and IndiGo. The request could therefore have wider implications for airlines seeking to access credit under ECLGS 5.0, particularly those that require additional liquidity to support critical operations.
The industry body has also urged the ministry to support eligible member airlines and help address any delays in the credit disbursement process by engaging with participating banks.
The ECLGS framework is aimed at providing credit support to eligible businesses facing liquidity requirements and the FIA's intervention only seeks to ensure that the availability of sanctioned credit translates into actual liquidity for airlines without undue delays.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.