New Delhi, May 5 -- India's aviation sector has received a Rs.5,000 crore lifeline under the government's emergency credit line guarantee scheme (ECLGS), allowing airlines to tap government-backed loans as soaring jet fuel costs and West Asia disruptions strain their cash flows. The lifeline aims to ease near-term liquidity stress and help carriers sustain operations amid rising costs and slowing traffic growth and is part of the Rs.2.5 trillion ECLGS approved by the Union cabinet on Tuesday.

"Passenger airlines are eligible for up to 100% of peak credit up to Rs.1,500 crore," information and broadcasting minister Ashwini Vaishnaw said in a press briefing.

ECLGS provides government guarantee to banks and financial institutions for addit...