FHRAI submits a representation to the Finance Minister Nirmala Sitharaman, requesting for moratorium for loans taken by the tourism and hospitality sector and a special resolution framework for restructuring of the loans along with moratorium extension of minimum one year for loans availed under ECLGS. Highlighting the a volatile economic environment in the sector due to successive waves, it has also asked that the Rs.60,000 Crore Loan Guarantee Scheme for COVID Affected Sector be notified with immediate effect and lastly, demanded for direct benefit transfer of basic pay to employees of the hospitality sector.
Underlining the increasing debt burden, obligations and statutory liabilities, Mr Gurbaxish Singh Kohli, Vice President, FHRAI said, “The repayment schedule for the loans taken under ECLGS 1.0 and 2.0 have started in most of the cases. But unfortunately, those establishments do not have the cash flow to repay the loans due to the bad state of affairs in the sector. We request that in view of the unparalleled situation of the tourism and hospitality sector, another round of resolution framework be announced for the sector for restructuring of its loans.” FHRAI has also requested for the working capital requirement of the hospitality sector to be supported by the Government with a long-term funding scheme with a low-interest rate and a guarantee from Central Government to Banks and NBFCs.
