Low-cost airline SpiceJet has welcomed the modifications made within the Emergency Credit score Line Assure Scheme (ECLGS) for the civil aviation sector however has requested the federal government to increase assist on jet gas as nicely.
“This can present an incredible enhance for airways. I request the federal government as soon as once more for its assist for together with Aviation Turbine Gas beneath GST, which might be a sport changer for the whole sector,” Ajay Singh, Chairman and Managing Director, SpiceJet mentioned.
The airline expects to obtain a further ₹1000 crore as a part of the modified Emergency Credit score Line Assure Scheme (ECLGS), an organization official mentioned on situation of anonymity. The airline is in want of funds to maintain heavy value burden and pay pending dues.
The airline has additionally been in discussions with bankers to boost $200 million, the official added.
The finance ministry in the present day mentioned that it has modified the Emergency Credit score Line Assure Scheme (ECLGS) to reinforce the utmost mortgage quantity eligibility for airways beneath ECLGS 3.0 to 100% of their fund based mostly or non-fund-based mortgage excellent as on the reference dates or Rs. 1,500 crore, whichever is decrease; and of the above, Rs. 500 crore shall be thought of, based mostly on fairness contribution by the proprietor.
The modifications launched are aimed to offer crucial collateral-free liquidity at affordable rates of interest to tide over their current money stream issues.
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Supply: Live Mint