SpiceJet may get funds under ECLGS next week

New Delhi: SpiceJet, which is facing financial headwinds, is likely to receive around Rs 225 crore under the government's credit guarantee scheme next week, according to a source.

Hit by high fuel prices and rupee depreciation, the budget carrier on Wednesday posted a net loss of Rs 789 crore for June quarter and also said its board has approved raising up to Rs 2,000 crore.

On Friday, the source said the airline is expected to receive around Rs 225 crore next week under the Emergency Credit Line Guarantee Scheme (ECLGS). Under the scheme, announced in May 2020 in the wake of the pandemic to help various sectors, entities will get credit at a concessional rate of 7 per cent.

On August 17, the Union Cabinet approved the enhancement in the limit of ECLGS by Rs 50,000 crore to Rs 5 lakh crore. The additional amount is being earmarked exclusively for enterprises in hospitality and related sectors.

The source also said that a new Chief Financial Officer (CFO) is expected to join the airline next week.

On Wednesday, the airline said its Chief Financial Officer Sanjeev Taneja has resigned.

There was no immediate response from the airline on ECLGS funding.

On August 23, SpiceJet Chairman and Managing Director Ajay Singh said the airline was doing the utmost to work through the stress that it has faced and the strategy is to raise resources.