Go First seeks Rs 600 cr loan demands under ECLGS to meet operational

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New Delhi: In response to increased demand for air travel, budget airline Go First plans to quickly raise a loan of Rs 600 crore for its operations under the Emergency Credit Line Guarantee Scheme (ECLGS).

The airline source added that the promoters have invested over Rs 2,800 crore in the last 15 months, which has helped the carrier overcome several challenges such as the pandemic, travel restrictions and rising fuel prices.

The government last month upgraded the ECLGS by extending the maximum loan amount that businesses can borrow to Rs 1,500 crore from the previous ceiling of Rs 400 crore to help the aviation industry, which is on the way to recovery after the severe impact. by the epidemic.

According to the source, the airline has so far availed Rs 400 crore under ECLGS. “We will bid for Rs 600 crore under ECLGS in the coming days. Banks like Central Bank, Bank of Baroda and IDBI are our lenders. We will first approach them to avail these funds,” the source told PTI.

The airline can access up to Rs 600 crore of the remaining Rs 1,100 crore cash under ECLGS. The source added that access to the remaining 500 million rupees is subject to obtaining certain government approvals, including clarification of the amount of reserves the project promoters want to contribute.

The source says the company has total working capital loans of Rs. 2650 million. Go First carried 8.15 million domestic passengers in September, its market share was 7.9%.

Indian airlines are expected to lose more than USD 2.5 billion this financial year, according to an estimate by aviation consultancy CAPA earlier this week. That’s higher than the $1.4 billion to $1.7 billion previously forecast for the same period.



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