Even as the Centre expanded the scope of the Emergency Credit Line Guarantee Scheme (ECLGS), founder and CEO of Martin Consulting Mark D Martin, on May 31, said that support for the aviation industry is not enough.
“I do not see this emergency credit lend borrowing initiative being any great support; it’s just enough to soften the blow to take care of salaries but the major development cost, which is going to be at least Rs 3,000-4,000 crore is still a gap,” Martin told CNBC-TV18 in an interview.
Martin Consulting CEO’s remarks come a day after the government extended ECLGS 3.0 to the civil aviation sector, a move that is expected to provide a liquidity solace for the COVID-19 pandemic-hit segment. There is a cap of Rs 200 crore for the sector.
Martin, however, hailed the decision as a great step. “It’s brilliant but we have to sort out the finer aspects to this because it is way more complicated than just a credit facility,” he said.
“Rs 200 crore is not much and airline deposits and lease rentals run in much higher. It certainly will be a challenge but the bigger question is why this is only targeted to airlines. We should look at airports and the other support services in addition to what the government has said,” Martin added.
For the entire interview, watch the accompanying video