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Informist, Tuesday, Apr. 7, 2026

 

NEW DELHI – The government is likely to roll out the Emergency Credit Line Guarantee Scheme, an initiative from the COVID-19 era, with an outlay of INR 2.5 trillion to support businesses amid the ongoing war in West Asia, a finance ministry official said. The government is also planning to set up a $2 billion maritime insurance fund for shipping companies with a contribution of $500 million from insurance companies, the official added. 

 

Under the Emergency Credit Line Guarantee Scheme, launched in 2020, the government provided 100% guarantee on collateral-free loans to businesses facing liquidity crises due to COVID-19. The government will soon seek the approval of the Union Cabinet for the planned interventions, the official said. 

 

The government has re-adopted its pandemic-period approach to deal with the crisis emanating from the war in the West Asia, the official said, adding that several other pandemic-period measures may also make a comeback if need arises. "We have been doing a weekly appraisal of the situation to gauge the requirements and plan interventions," the official said. The government has set up an inter-ministerial committee to coordinate policies to tackle the headwinds arising out of the West Asia war. 

 

In view of the blockade of the Strait of Hormuz since the onset of the West Asia war, which has pushed the price of Brent Crude over $100 a barrel, the government has already announced multiple measures to insulate the economy. Last month, the government cut excise duty on petrol and diesel by INR 10 per litre to offset under-recoveries by oil marketing companies and ensure they continue sourcing crude oil and maintain domestic fuel supply without raising retail prices. The government also capped the price hike on aviation turbine fuel by oil marketing companies at 25% for airlines operating on domestic routes.  End 

 

US$1 = INR 92.96

 

Reported by Krity Ambey and Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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