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HomeAirline NewsGo First plans to avail Rs 600 crore loan under ECLGS soon

Go First plans to avail Rs 600 crore loan under ECLGS soon

Budget airline Go First is planning to tap a Rs 600 crore loan under the Emergency Credit Line Guarantee Scheme (ECLGS) soon for its operations amid growing demand for air travel, according to a source. An airline source also said promoters have poured in around Rs 2,800 crore in the last 15 months, which has helped the carrier deal with multiple headwinds, including the pandemic, travel curbs and higher fuel costs.

To help the aviation industry, which is on the road to recovery after being hit hard by the pandemic, the government last month amended the ECLGS by raising the credit limit the entity can avail to Rs 1,500 crore from Rs 400 crore. previously.

The source said the airline has so far availed Rs 400 crore under ECLGS. “Over the next few days, we will be asking for Rs 600 crore under ECLGS. Banks like Central Bank, Bank of Baroda and IDBI are our lenders. We will approach them first to avail these funds,” a source told PTI. Of the remaining Rs 1,100 crore available under ECLGS, the source said the airline can now tap up to Rs 600 crore. The remaining amount of Rs 500 crore can be utilized subject to certain government approvals, including clarification of the amount of equity to be infused by the promoters, the source added.

According to the source, the company has a cumulative working capital loan of Rs 2,650 crore. In September, Go First carried 8.15 lakh domestic passengers and had a market share of 7.9 percent.

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