Shares of SpiceJet Ltd surged about 9%, on Thursday, after a report said that the Indian budget airline carrier is expected to receive an additional ₹10 billion loan under the Government's modified Emergency Credit Line Guarantee Scheme.

The Government, on Wednesday, enhanced the maximum loan amount eligibility for airlines under the scheme to 100% of their loan outstanding to help the companies tide over cash-flow problems.

The funds will help the airline clear its dues, pay lessors on time, and induct new Boeing 737 Max planes, Business Standard newspaper reported, citing sources.

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The airline is currently operating less than 50% of its approved flights, following an order from the Directorate General of Civil Aviation due to multiple incidents involving its aircraft.

Bankers have also been contacted to raise $200 million, Mint reported, citing an airline official.

The report comes two weeks after the air safety watchdog extended a restriction on SpiceJet's flight departures until October 29.

As of 0514 GMT, shares of the carrier were up 6.1% at ₹40.8. The stock marked its sharpest intraday percentage gain since August 5.