Aviation firms in talks with banks to raise debt under modified ECLGS

On Sunday govt allowed firms in civil aviation sector that are facing headwinds to borrow up to Rs 200 cr fresh loan under the scheme

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