Cabinet Approves Emergency Credit Line Guarantee Scheme 5.0

08 May 2026 CW Team

ECLGS 5.0 extends 100 per cent guarantee cover for MSMEs and 90 per cent for non-MSMEs and the airline sector for amounts in default under additional credit facilities aimed at short-term liquidity mismatches. The facility sets a maximum loan limit of Rs 10 bn per borrower with an additional Rs 5 bn subject to equivalent equity infusion by the borrower. Loans may have a tenure of up to seven years, including a two-year moratorium on repayment, to ease immediate cash flow pressures.

The scheme allows conversion of up to 50 per cent of interest into a Funded Interest Term Loan (FITL) and offers additional credit up to 20 per cent of peak working capital utilised during the fourth quarter of fiscal year 2026, capped at Rs one bn. For airlines the scheme permits additional support up to 100 per cent, capped at Rs 15 bn per borrower, subject to specified conditions. Guarantee cover will be co-terminus with the tenure of the loan and the scheme applies to loans sanctioned up to 31 March 2027.

The government expects the measure to strengthen lender confidence, improve credit flow to the sector and support operational stability at a time of rising aviation turbine fuel prices and exchange rate volatility. Officials noted the scheme is intended to sustain employment, preserve sectoral capacity and reduce the pass-through of increased costs to passengers while maintaining connectivity. Implementation guidance will be issued by NCGTC to Member Lending Institutions for operationalisation.

The Union Cabinet has approved the Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0) to provide targeted credit support to Indian airlines and micro, small and medium enterprises (MSMEs) amid operational disruptions linked to the West Asia situation. The scheme allocates Rs 2.55 tn of additional credit flow, of which Rs 50 bn has been earmarked for airlines, and will be implemented by Member Lending Institutions (MLIs) with guarantee cover from National Credit Guarantee Trustee Company Limited (NCGTC). ECLGS 5.0 extends 100 per cent guarantee cover for MSMEs and 90 per cent for non-MSMEs and the airline sector for amounts in default under additional credit facilities aimed at short-term liquidity mismatches. The facility sets a maximum loan limit of Rs 10 bn per borrower with an additional Rs 5 bn subject to equivalent equity infusion by the borrower. Loans may have a tenure of up to seven years, including a two-year moratorium on repayment, to ease immediate cash flow pressures. The scheme allows conversion of up to 50 per cent of interest into a Funded Interest Term Loan (FITL) and offers additional credit up to 20 per cent of peak working capital utilised during the fourth quarter of fiscal year 2026, capped at Rs one bn. For airlines the scheme permits additional support up to 100 per cent, capped at Rs 15 bn per borrower, subject to specified conditions. Guarantee cover will be co-terminus with the tenure of the loan and the scheme applies to loans sanctioned up to 31 March 2027. The government expects the measure to strengthen lender confidence, improve credit flow to the sector and support operational stability at a time of rising aviation turbine fuel prices and exchange rate volatility. Officials noted the scheme is intended to sustain employment, preserve sectoral capacity and reduce the pass-through of increased costs to passengers while maintaining connectivity. Implementation guidance will be issued by NCGTC to Member Lending Institutions for operationalisation.

Technology

29 Jul 2026

AI-Enabled Workflows Lift Profitability and Productivity

Organisations modernising frontline workflows with artificial intelligence, automation and real-time data are reporting stronger financial performance, higher productivity and improved employee engagement, according to a global study by Zebra Technologies and Oxford Economics.The research covered 1,000 senior leaders across retail, manufacturing, transportation and logistics in the US, Mexico, the UK, Germany, India, Japan, Australia and New Zealand.In transportation and logistics, 54 per cent of companies that improved picking and packing operations reported faster operational performance, wh..

Real Estate

29 Jul 2026

India Leads Global AI Readiness but Implementation Lags

Indian companies lead global averages across all eight artificial intelligence readiness indicators tracked by JLL, but only 19 per cent have started making changes to their workplaces, according to the JLL 2026 Future of Work Survey.The study found that 77 per cent of Indian business leaders expect AI to change their office requirements, creating a 58-percentage-point gap between awareness and implementation. The survey covered more than 2,200 CEOs, CFOs and real estate leaders across 21 countries during the first quarter of 2026.Despite concerns over automation, 58 per cent of Indian leaders..

Equipment

29 Jul 2026

Three WOLFF Cranes Build Riyadh Cable-Stayed Bridges

Three WOLFF 180 B luffing jib cranes are supporting the construction of two cable-stayed bridges alongside the existing Wadi Laban Bridge in Riyadh, Saudi Arabia. The project is being developed for the Royal Commission for Riyadh City and executed by the ICRC joint venture comprising IC Ictas and Al Rashid Trading & Contracting Company.The cranes are handling lifting operations including formwork, reinforcement, concrete placement, work platforms, surveying equipment and other construction materials. Each crane is fitted with a 40 m jib, reaches a hook height of 157 m and offers a maximum ..