Go First May Avail Rs 600 Cr Loan Under ECLGS
The promoters of the airline have introduced nearly Rs 2,800 crore in the last 15 months. In the last month, the government altering the ECLGS had raised the limit of loan that can be availed by an organisation from Rs 400 crore to Rs 1,500 crore
The low-cost airline Go First is planning to get a loan of Rs 600 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) soon. The funds, if availed, will be utilised for its operations considering the rise in air travel demand, reported a media house.
Also, also the promoters of the airline have introduced nearly Rs 2,800 crore in the last 15 months. It helped the carrier deal with multiple headwinds, which include those occurred due to the pandemic, travel curbs and higher fuel costs, the report added.
In the last month, the government altering the ECLGS had raised the limit of loan that can be availed by an organisation from Rs 400 crore to Rs 1,500 crore. This move was taken to extend a help to the airline industry, which was majorly disturbed by the pandemic, and is now on the path of recovery.
As per the report, till date, the airline has availed Rs 400 crore in total under the ECLGS and it will be applying for Rs 600 crore in coming few days. Banks such as Central Bank, Bank of Baroda and IDBI would be among lenders and will be approached in the first place to avail the funds.
The airline now can avail only up to Rs 600 crore from the remaining Rs 1,100 crore funds available under the scheme. The remaining amount can be availed after being approved by the government. It will include the clarity on the quantity of equity that has been introduced by the promoters, the report added.
Currently, the company in total has a cumulative working capital loan of Rs 2,650 crore. The Go First carried around 8.15 lakh domestic passengers with a market share was at 7.9 per cent, in September.
Early in this week, Centre for Asia Pacific aviation, an aviation consultancy firm, had estimated that Indian airlines’ losses may exceed USD 2.5 billion in this fiscal. Its current projection exceeds the earlier one of USD 1.4-1.7 billion for the same period.