SynopsisShipping routes East of Hormuz and in the Red Sea have seen a significant increase in services. The Indian government is also processing a large number of applications for the Emergency Credit Line Guarantee Scheme 5.0. This comes as tensions in West Asia have impacted maritime trade and insurance. India has launched a maritime insurance pool to support its vessels.ANIShipping routes East of Hormuz and in the Red Sea have seen a significant increase in servicesNew Delhi: The number of shipping services to East of Hormuz and in the Red Sea have doubled from February alone, Mukesh Mangal, Additional Secretary, Ministry of Ports, Shipping, and Waterways said Monday.Also speaking to journalists, during an inter-ministerial briefing on West Asia issues, Manoj Muttathil Ayyappan, Joint Secretary in the Department of Financial Services (DFS), Ministry of Finance noted the centre has received 2,62,800 applications seeking Rs 1.71 lakh crore from the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.Also Read: Shipping firms face tough 2026 as reopening of Red Sea looms“There has been a significant increase in services East of Hormuz and in the Red Sea,” Mangal said, noting there were 127 services in February. The numbers rose to 205 in March, 257 in April, and approximately 250 in May.Tensions in West Asia have flared in March this year after joint US-Israel air strikes assassinated Iran’s supreme leader Ayatollah Ali Khamenei on February 28. Iran retaliated with missile and drone attacks in the region and blocked the Strait of Hormuz, stunting global energy trade.At least 13 Indian flagged vessels remain stuck in the west of Hormuz. Attacks at the East of Hormuz and parts of the Red Sea have calmed as alternative routes to evacuate stranded cargo and seafarers are emerging in the region.Also Read: The next oil shock is coming, and it won’t come from HormuzIran’s targeting merchant vessels spooked insurers that refused to cover cargo or ships in the region. In May this year, India launched the Bharat Maritime Insurance Pool with a sovereign guarantee of Rs 12,980 crores to facilitate continuous maritime insurance coverages. The pool covers all maritime risks such as Hull and Machinery, Cargo, Protection and Indemnity, and War risk for Indian flagged or controlled vessels or vessels destined to or starting from the country.According to Mangal, 26 policies have been issued to shippers through the Bharat Maritime Insurance Pool till now. He did not specify the destination of these vessels or beneficiaries of the insurance pool.Loans under emergency creditRegarding the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, Ayyapan noted the government has received over 2,62,800 applications seeking Rs 1,71,337 crore support. “Out of these, Rs 35,194 crore has already been sanctioned against 79,950 applications, and guarantees worth Rs 15,720 crore have been issued,” Ayyapan said.An official statement said applications amounting to Rs 1,31,107 crore are from Micro, Small, and Medium Enterprises (MSMEs) and sanctions worth Rs 30,355 crore are towards them.Responding to a query on whether any concerns of Non-Performing Assets (NPAs) rising in MSMEs have been flagged, Ayyapan said the government has “not seen any reports indicating that stress is increasing specifically due to the West Asia crisis, and therefore does not anticipate any immediate challenges on that front.”Read More News on...moreless