Responding to the crisis in West Asia, the Union Cabinet on Tuesday okayed the fifth edition of its emergency credit line guarantee scheme, under which it will provide additional credit guarantees to micro, small and medium enterprises (MSMEs) and non-MSMEs, including airline companies.The total outlay of the scheme is expected to be Rs 18,100 crore, and it is expected to generate additional credit flows worth Rs 2.25 lakh crore, official sources said.“The scheme aims to enable businesses to tide over the challenges arising from the West Asia conflict,” the government said in a statement. “Additionally, this is expected to help businesses maintain their operations, protect jobs and sustain supply chains,” it added further.The scheme, according to the statement, is open to MSMEs, non-MSMEs with existing working capital limits and scheduled passenger airlines that have outstanding credit facilities as of March 31, 2026, as long as their loan accounts are not overdue.Under the scheme, the government will provide 100 per cent coverage to MSMEs and 90 per cent to non-MSMEs and airlines for loans they take for additional credit up to 20 per cent of the peak working capital utilised during the fourth quarter of 2025-26 (capped at Rs 100 crore).For airlines, the loans can be for up to 100 per cent of their peak working capital, but this is capped at Rs 1,500 crore per borrower, subject to satisfying certain specific conditions.The Tribune had reported that airlines across India, the US and other key markets have begun cutting flights and revising schedules as a surge in aviation turbine fuel prices linked to tensions in West Asia is directly impacting operating costs, thus forcing airlines to trim capacity across long-haul networks.In India, the impact has widened across carriers. Air India has moved to reduce its international services through June and July after higher fuel costs made several routes commercially unviable. The credit line guarantee scheme, therefore, has come as a relief for the sector.