Aviation Relief: Centre Proposes ₹5,000 Crore Credit Line Amid Global Tensions

New Delhi: The Union Government is reportedly considering a ₹5,000 crore credit support scheme for the aviation sector to mitigate the financial strain caused by ongoing geopolitical instability. According to NDTV Profit, this proposal is part of a massive ₹2.5 lakh crore crisis support framework designed to cushion various industries from global economic shocks.

ECLGS Expansion for Airlines

The relief is expected to be channeled through the Emergency Credit Line Guarantee Scheme (ECLGS). Under the proposed terms:

• Credit Cap: Individual airlines may be permitted to access up to ₹1,000 crore.

• Government Guarantee: The facility may offer up to a 90% government guarantee on loans.

• Tenure: The scheme is projected to run for five years, providing long-term liquidity as the sector navigates fuel price volatility linked to the U.S.-Iran and Middle East conflicts.

Proactive Measures by Civil Aviation Ministry

This credit line follows a series of recent interventions by Civil Aviation Minister Ram Mohan Naidu aimed at stabilizing the industry:

• Cost Reduction: A 25% cut in landing and parking charges was recently announced for domestic carriers to help keep airfares affordable despite rising jet fuel costs.

• Training Standards: The Ministry also released the second phase of FTO (Flying Training Organisation) rankings for April 2026. Under the new transparency framework, training standards have seen marked improvement, with one additional institute climbing to the prestigious ‘A’ category this month.

The twin-track approach of providing immediate financial liquidity while focusing on long-term infrastructure and training standards highlights the government’s intent to shield the aviation ecosystem from external disruptions.