India’s leading airlines — Air India, IndiGo and SpiceJet — could each receive credit support of up to ₹1,500 crore under the government’s Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, according to reports.
The relief package was approved to support sectors affected by the ongoing West Asia conflict, which has increased operational pressure on airlines through higher aviation turbine fuel (ATF) prices, airspace restrictions and disruptions to international flight operations.
Department of Financial Services Secretary M Nagaraju stated that the government has proposed a maximum support limit of ₹1,500 crore for each major airline, potentially taking total aviation sector assistance close to ₹5,000 crore including smaller carriers. The scheme’s guarantee structure will depend on bank exposure, outstanding loans and past non-performing asset trends.
Under ECLGS 5.0, airlines may access loans of up to ₹1,000 crore per borrower, along with an additional ₹500 crore linked to equivalent equity infusion. The loans could carry a tenure of seven years, including a two-year repayment moratorium, while part of the interest component may also be converted into a funded interest term loan.