The government has approved an Emergency Credit Line Guarantee Scheme (ECLGS 5.0) with an outlay of Rs 18,100 crore to support MSMEs and airlines hit by the West Asia conflict, PTI reported.The scheme is expected to enable additional credit flow of Rs 2.55 lakh crore, including Rs 5,000 crore earmarked for the aviation sector.“The scheme has been brought to address the stress in MSME and airline sectors due to the West Asia conflict,” Information and Broadcasting Minister Ashwini Vaishnaw said while briefing the media.Under the scheme, passenger airlines will be eligible for up to 100 per cent of peak credit capped at Rs 1,500 crore, while other institutions can access up to 20 per cent of fund-based working capital, capped at Rs 100 crore.The government said the initiative is aimed at helping businesses manage disruptions caused by the conflict, sustain operations and protect jobs.“Additionally, this is expected to help businesses maintain their operations, protect jobs, and sustain supply chains. The proposed credit guarantee scheme is a major step to help businesses, particularly MSMEs and airline sector, to ensure their additional working capital needs are catered by the banks and financial institutions,” an official release said.The scheme will provide 100 per cent credit guarantee coverage for MSMEs and 90 per cent for non-MSMEs and airlines to lending institutions through the National Credit Guarantee Trustee Company Limited (NCGTC).It is designed to address short-term liquidity mismatches arising from the crisis and ensure uninterrupted domestic production and supply chains.The loan tenure for airlines will be seven years, including a two-year moratorium, while MSMEs and non-MSMEs will get a five-year tenure with a one-year moratorium.The scheme will apply to loans sanctioned from the date of notification till March 31, 2027.Civil Aviation Minister K Rammohan Naidu said the move is crucial for the aviation sector.“It will provide strong financial backing to safeguard jobs, sustain connectivity, and ensure resilience across the aviation ecosystem, while also supporting MSMEs,” he said in a post on X.MSMEs and airlines have been under pressure since the West Asia conflict began in February, impacting costs, operations and liquidity.The ECLGS was first introduced in May 2020 to support businesses during the Covid-19 pandemic.