New Delhi, May 6 -- The government on Tuesday approved a new version of the Emergency Credit Line Guarantee Scheme (ECLGS) with an outlay of Rs.18,100 crore to provide liquidity support worth Rs.2.55 lakh crore to micro, small and medium enterprises (MSMEs), aviation sector and other businesses to overcome stress caused by the West Asia conflict. Announcing the decision after the cabinet meeting, Union information and broadcasting minister Ashwini Vaishnaw said the fifth version of the scheme (ECLGS 5) has two different categories - one for MSMEs and other businesses and the other for passenger airlines. The purpose of the scheme is to ensure operational continuity through enhanced liquidity to help businesses maintain supply chains, he said. Iran's near-closure of the Strait of Hormuz - through which roughly 20% of the world's energy transits - since the conflict began on February 28 has severely disrupted supplies to India, which imports 90% of its crude oil, and two-thirds of its LPG from Gulf countries through the waterway. Aviation turbine fuel prices have risen sharply from pre-crisis levels, while MSME supply chains have faced acute working capital pressure from input cost surges and logistics delays. ECLGS 5 allows businesses to access up to 20% of fund-based working capital with a maximum ceiling of Rs 100 crore, and up to 100% of peak credit with a cap of Rs.1,500 crore to eligible passenger airlines. The scheme carries a 100% government guarantee for MSMEs and 90% for non-MSMEs, with guarantee fees waived and a moratorium on principal repayments. The minister explained that the amount for airlines is higher because of their large working capital requirements. The scheme will help the aviation sector mitigate the shortfall in working capital requirements caused by the West Asia crisis, he said. "All MSMEs, other industries, airlines - everyone will get its benefit and it is expected to resolve this stress period," Vaishnaw said. The scheme was first introduced in 2020 to support businesses through the Covid-19 pandemic, and has since extended guarantees worth Rs.3.7 lakh crore to over 11 million MSMEs....