SpiceJet has received an initial disbursement of Rs 150 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, while the airline is yet to receive the remaining Rs 350 crore sanctioned under the credit facility. The development comes as the Federation of Indian Airlines (FIA) has sought the Civil Aviation Ministry’s intervention to speed up the release of approved credit to airlines.
According to a letter reviewed by NDTV Profit, the FIA wrote to the Civil Aviation Minister on Monday requesting support to facilitate faster disbursement under ECLGS 5.0. The industry body has also sought assistance for its member airlines that are eligible and intend to avail themselves of credit under the latest version of the scheme.
The FIA has specifically requested the ministry to provide guidance to participating banks so that sanctioned credit can be released without unnecessary delays. The industry body said timely access to liquidity would help airlines meet critical operational and working capital requirements. Such funding can support expenses associated with day-to-day airline operations and other immediate financial obligations.
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The request comes as airlines continue to require adequate liquidity to manage operational costs, including aircraft-related expenses, maintenance and other working capital needs. Delays between the sanctioning of credit and its actual disbursement can limit the usefulness of the facility for carriers that require funds to meet immediate requirements.
The FIA represents several major airlines, including Air India, SpiceJet and IndiGo, giving its request wider relevance for carriers seeking support through ECLGS 5.0. The industry body has urged the ministry to assist eligible member airlines and work with participating banks to address delays in the disbursement process.
The ECLGS framework is intended to provide eligible businesses with access to credit support during periods of liquidity pressure. Through its latest request, the FIA is seeking to ensure that sanctioned credit becomes available to airlines promptly, allowing carriers to use the funds for critical operations and working capital requirements.
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