Budget Airline Go First plans to soon avail Rs 600 crore loan below the Emergency Credit Line Guarantee Scheme (ECLGS) for its processes ahead of rising air travel demand.

According to media reports, the promoters have pervaded around Rs 2,800 crore in the last 15 months, which has helped the carrier confront multiple headwinds, including the pandemic, travel curbs and advanced fuel costs.

To help airline manufacturing, which is on the recovery path after being meaningfully hit by the pandemic, the government, in the last month, adapted the ECLGS by levitation the limit of loan that can be availed by the firm to Rs 1,500 crore from Rs 400 crore earlier.

“We will be smearing for Rs 600 crore under the ECLGS in the upcoming few days. Banks like the Central Bank (RBI), Bank of Baroda (BoB) and IDBI are our moneylenders. We will be impending them first to avail these funds,” the report told PTI.

Out of the residual Rs 1,100 crore funds obtainable under the ECLGS, the source said the airline can now avail up to Rs 600 crore. The source added that the remaining amount of Rs 500 crore could be accessible subject to certain government endorsements, including clearness on the importance of equity that the promoters will suffuse.

According to the media report, the company has a snowballing working capital loan of Rs 2,650 crore. Go First approved 8.15 lakh domestic passengers in September, and its market share was at 7.9%.

Earlier this week, aviation consultancy firm CAPA projected the wounded of Indian airlines to exceed $2.5 billion this fiscal. This is more sophisticated than its earlier prognosis of $1.4-1.7 billion for the same retro.