Getting capital subsidy, a long-drawn process

Lalit Mohan

Tribune News Service

Dharamsala, December 21

Hoteliers in the state are a harried lot as they are still waiting for the Centre to release the capital investment subsidy for their new ventures.

The Union government had sanctioned capital subsidy of 15 per cent for new hotels coming up in the state. The capital investment subsidy, aimed at promoting hotel and related industry in Himachal, has a maximum limit of Rs 50 lakh.

In the past two years, 71 hotels that came up in the state applied for the capital subsidy. But so far none have got it. Some of the cases are pending since 2012.

Sources here said the total subsidy due towards 71 hotels was nearly Rs 12.20 crore. Most of these hotels are located in Solan, Shimla and Kullu districts.

Bhupinder Sharma, who brought up a hotel in Solan district, while talking to The Tribune said: “The delay in the release of subsidy has hit the viability of the project. Most hoteliers have taken loans after the government offered to give the subsidy. But now, the release of subsidy is being delayed inordinately. This is hitting the viability of hotel projects.”

Another hotelier Ranbir Singh said: “The proprietors have to complete several formalities to apply for the capital subsidy. It does not consider the high cost of construction in a hill state like Himachal as all construction material has to come from the plane areas. In this case the capital subsidy becomes inconsequential in case it gets delayed.”