Under the government’s Emergency Credit Line Guarantee Scheme (ECLGS), nearly 20,000 applications from micro, small and medium enterprises (MSMEs) have been received for disbursement of Rs 25,000 crore, a senior Finance Ministry official said.
“We received around 20,000 applications, all from MSMEs, till this morning, and processed the required amount of Rs 25,000 crore. The scheme has been received very well,” the official said, adding that no applications had been received from airlines so far.
Under ECLGS 5.0, the government will provide 100% credit guarantee coverage for MSMEs and 90% coverage for non-MSMEs as well as the airline sector. Of the total Rs 25,000 crore allocated under ECLGS 5.0, Rs 5,000 crore has been specifically earmarked for airlines.
The scheme provides structured financial relief with a maximum loan limit of Rs 1,000 crore per borrower, along with an additional Rs 500 crore subject to equivalent equity infusion by the borrower.
The loans will have a tenure of up to seven years, including a two-year moratorium on repayment, thereby easing short-term liquidity pressures.
The Cabinet approved the scheme to address financial stress faced by airlines due to the sharp increase in aviation turbine fuel (ATF) prices, compounded by airspace closures and reduced operations, particularly on international routes, which have led to lower aircraft utilisation and liquidity constraints.
Finance Ministry officials also said that 23 policies had been issued under the Bharat Maritime Fund till May 28. “We expect the maritime insurance pool to become bigger and the premiums will further come down,” the official added.
The $1.5 billion fund has been established to provide comprehensive maritime coverage for Indian-flagged, India-bound and India-originating vessels. The Maritime Fund comes with a sovereign guarantee of Rs 12,980 crore to facilitate continuous maritime insurance coverage.
The pool is aimed at ensuring that Indian trade continues to have access to affordable insurance for vessels carrying cargo from any international origin to Indian ports and vice versa, even while transiting volatile maritime corridors.
This story is reported by Pushpita Dey