The Union Ministry of Finance approved a loan of up to Rs 15 billion under the Emergency Credit Line Guarantee Scheme (ECLGS) to help airlines solve cash flow problems.

Previously, an airline could get a loan of up to Rs 4 billion under the ECLGS. The ECLGS was established by the Center in 2020 to provide collateral-free and government-guaranteed loans to companies affected by the pandemic.

The Treasury Department's decision is likely to provide financial assistance to airlines in financial difficulty, such as SpiceJet, which have sought support from the Center to operate their operations. The airline received an ECLGS loan of about Rs 2.25 billion last month.