The industry body has asked the government to standardise and align the tenure and the moratorium facilities floated under ECLGS 1.0, 2.0 and 3.0, FHRAI said in a statement. FHRAI has also asked that the tenure of loan and moratorium facilities granted under the ECLGS 3.0 should be extended to loans already sanctioned under the earlier emergency credit line guarantee schemes with retrospective effect, it added.
Hospitality sector body urges govt for special credit guarantee window under ECLGS
In the representation, the Federation of Hotel and Restaurant Associations of India (FHRAI) has asked the government to standardise and align the tenure and moratorium facilities floated under ECLGS 1.0, 2.0 and 3.0
PTI | May 2, 2021 | Updated 16:59 IST
ECLGS was launched by the Government of India as a special scheme in view of COVID-19 crisis
The Federation of Hotel and Restaurant Associations of India (FHRAI) on Sunday said it has requested Finance Minister Nirmala Sitharaman to provide a special credit guarantee window to the hospitality sector under the Emergency Credit Line Guarantee Scheme (ECLGS).
FHRAI seeks special credit guarantee window for hospitality sector
PTI
New Delhi |
Updated on
May 02, 2021
‘The sector is under tremendous financial stress due to the ongoing lockdown’ The Federation of Hotel and Restaurant Associations of India on Sunday said it has requested Finance Minister Nirmala Sitharaman to provide a special credit guarantee window to the hospitality sector under the Emergency Credit Line Guarantee Scheme (ECLGS). The industry body has asked the government to standardise and align the tenure and the moratorium facilities floated under ECLGS 1.0, 2.0 and 3.0, FHRAI said in a statement.
‘Align tenure’
“The repayment schedule for loans taken under ECLGS 1.0 and 2.0 are likely to begin now, but unfortunately due to the ongoing lockdown many establishments do not have the cash flow to repay it.Therefore, it is imperative to align the tenure and moratorium facilities under ECLGS 1.0 and 2.0 with ECLGS 3.0,” FHRAI Vice-President Gurbaxish Sing
Covid wave two impact: Hotel sector sees little room for hope
It may take the hospitality industry two years before it sees full recovery
Summer is a crucial period for the hotel industry as it earns a big chunk of revenues from the domestic leisure and wedding business. But with the country being hit by the second wave of Covid-19, the industry is on the back foot again. Even if trends start reversing from the second quarter, industry players believe that business will remain subdued throughout the current fiscal.
To cope with the situation, the industry has been asking State governments to give waivers on property tax, liquor licence fee, electricity charges and municipal taxes, among others, to help the sector tide over the current crisis. Experts pointed out that the smaller hotels have been more adversely impacted and it may take the hotel industry two years before it can see full recovery.
NEW DELHI: The Federation of Hotel and Restaurant Associations of India has written to all chief ministers and chief secretaries asking them to support the survival and revival of the hospitality sector, badly hit by the surge in coronavirus and the resultant restrictions on travel.
In a letter to all chief ministers and heads of bureaucracy in the states, FHRAI asked for the abolition of the policy of imposing blanket ban or selective restrictions on Hospitability establishments. Instead, the representative body said establishments should be given relaxations or waiver of statutory payments such as electricity charges, property taxes and excise license fees, among others. It also demanded that of hospitality industry workers be treated as frontline corona warriors and be given priority vaccination, and that invitation cards for wedding be permitted instead of curfew passes, for people attending weddings.