The Central Government on Sunday extended the scope of the Emergency Credit Facility Guarantee Scheme (ECLGS) to include the air travel service in it as well. This decision will provide relief to the badly affected civil aviation sector due to Kovid-19 from the cash crunch crisis.
Problems of cash will be less
People associated with the industry said that the decision to include the civil aviation sector in the ECLGS scheme has been taken at the right time. This will reduce the pressure on the sector and reduce the cash problem. The civil aviation sector badly affected by the corona infection was expected to help from the government.
Passenger capacity increased in domestic airlines
The Civil Aviation Ministry recently allowed domestic airlines to limit capacity by 50 percent from June 1 in view of the second wave of Kovid-19. To curb the growing cases of Corona, air traffic has come down significantly due to restrictions imposed in many states.
ECLGS scope expanded
In a statement on Sunday, the Finance Ministry said that due to Kovid-19, many economic activities have been affected due to which it has been decided to expand the scope of ECLGS. The civil aviation sector is included under the ECLGS 3.0 scheme. In March, the hospitality, travel, and tourism sectors were included in the ECLGS 3.0 scheme.
Arrears limit also reduced
The Finance Ministry has also removed the existing limit of Rs 500 crore arrears under ECLGS 3.0. The ECLGS assistance for each borrower has been reduced to 40 percent or Rs 200 crore whichever is less. The people associated with aviation have welcomed the decision of the government and said that this will give relief from the cash shortage crisis in the region.