New Delhi, April 27: In response to rising tensions in the Middle East, the Indian government is contemplating a ₹5,000 crore credit support scheme for affected airlines. This initiative aims to provide significant relief to the country’s aviation sector, according to a recent report.
As per NDTV Profit, the proposed scheme may be implemented under the Emergency Credit Guarantee Scheme (ECLGS). This scheme is part of a broader package that the government is working on, which amounts to approximately ₹2.5 lakh crore to support various sectors impacted by the Middle East unrest.
Sources indicate that airlines may be allowed to access credit through the ECLGS, with each airline potentially receiving a credit limit of around ₹1,000 crore.
The scheme is expected to last for five years, with the possibility of extension. The government could guarantee up to 90% of the loans provided under this initiative.
Additionally, sources mentioned that the proposed relief plan for airlines is part of a comprehensive crisis support framework being developed by the government to mitigate the economic impacts of global uncertainties.
This move comes at a time when geopolitical tensions, including the U.S.-Iran conflict, are exerting continuous pressure on key sectors like aviation, which remain sensitive to fluctuations in fuel prices and global disruptions.
Earlier this month, the Ministry of Civil Aviation announced the second phase of the DGCA-approved Flying Training Organization (FTO) rankings for April 2026, reflecting an overall improvement in training standards, with one institution achieving the top ‘A’ category.
Developed under the guidance of Civil Aviation Minister Ram Mohan Naidu, this ranking framework aims to enhance transparency, accountability, and safety standards across flying training institutions nationwide.
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