The expansion of the Emergency Credit Line Guarantee Scheme (ECLGS) announced by the government on May 30, will help companies in sectors such as civil aviation, hotels and tour operators, where demand has been severely affected by the intense second wave of the Covid-19 pandemic, Crisil said on Wednesday.
Companies providing support services to airlines have initiated discussions with banks to raise debt under the modified Emergency Credit Line Guarantee Scheme (ECLGS). On Sunday the government announced that companies in the civil aviation sector which are facing headwinds would be able to borrow up to Rs 200 crore of fresh loans under the scheme. Aviation sector sources and bankers say that the expanded scheme could address the financing requirements of ancillary units in the civil aviation sector whose financing requirements are lower than those of airlines. “Since ECLGS scheme has been made available to the civil aviation sector, we are evaluating the funding options and our team is in discussion with banks to understand the modified scheme. We will be able to take a call once we have more clarity on the terms. The sector should be given another round of bank moratorium,” said Murali Ramachandran, India CEO of Celebi Aviation which provides ground handling services to ai