Emergency credit line guarantee scheme: Aviation firms get Rs 349 cr

VK Singh, the Minister of Civil Aviation, announced in the Rajya Sabha that the Emergency Credit Line Guarantee Scheme (ECLGS) has provided guaranteed support to companies in the aviation sector, including airlines such as SpiceJet and GoAir, to the tune of Rs 349 crore. While no funds have been specifically allocated to the civil aviation sector, according to information from the National Credit Guarantee Trustee Company (NCGTC), borrowers from the sector have been provided with guaranteed support of up to Rs 349 crore as of July 16, cited Singh. SpiceJet has received loans worth Rs 127.52 crore, as per data presented by Singh, while Bird Worldwide Flight Services Mumbai Private Limited, a Bird Group subsidiary that provides ground handling services at Mumbai airport, was guaranteed a sum of Rs 8.5 crore under ECLGS 3.0. ECLGS 3.0 has guaranteed a total of Rs 136 crore in funding. These ECLGS 2.0 companies have received a net amount of Rs 213 crore in guarantees:ECLGS 2.0 CompanyAmountAerostructures Manufacturing India Private Ltd(Rs 45.19 crore)Air Works India Engineering Pvt LtdRs 11.07 crore)Alpha Design Technologies Pvt LtdRs 2.50 croreBengal Aerotropolis Project LtdRs 16.36 croreCAE Simulation Training Pvt LtdRs 18.40 croreFlight Simulation Technique Centre Pvt LtdRs 44.14 croreGo Airlines LtdRs 25.65 croreRossell India LtdRs 18.31 croreSuad Forging India Pvt Ltd Rs 3.5 crore VEM Technologies Pvt LtdRs 1.93 croreWAISL LtdRs 26 crore  The ECLGS was launched by the Ministry of Finance in May 2020 to assist the pandemic-affected economy. According to a Crisil report released in June, the ECLGS' expansion to sectors such as civil aviation, hotels, and tour operators, which have been hard hit by the second wave of the covid-19 pandemic, will provide a lifeline for highly leveraged companies. Image Source