Mumbai, May 6 -- The scheme aims to facilitate additional credit flow of Rs 2.55 lakh crore. This includes Rs 5,000 crore earmarked for airlines.

The Cabinet, chaired by Prime Minister Narendra Modi, approved the proposal on Tuesday, 5 May 2026. The government said the scheme would help businesses tackle short-term liquidity stress arising from the conflict.

Under the scheme, passenger airlines can avail additional credit support of up to 100% of peak working capital utilisation during Q4 FY26. The support is capped at Rs 1,500 crore per borrower. MSMEs and other eligible borrowers can avail up to 20% of peak working capital utilisation, capped at Rs 100 crore.

Civil Aviation Minister K. Rammohan Naidu said the move would help airlines...