Extend subvention scheme: Hoteliers

Ambika Sharma

Tribune News Service

Solan, April 26

Hoteliers have sought the review and reintroduction of the interest subvention scheme on working capital introduced by the government for the hospitality sector in July last year.

Jobs under threat

Most hotels have taken loans from banks and will be forced to shut if no financial assistance is provided to repay the loan interest. This will lead to large-scale unemployment as hundreds of local youths are employed in hotels — Devinder Verma, President, Chail hoteliers association

The scheme had expired on March 31. Facing losses again following Covid restrictions in several states, hoteliers have sought its review and extension.

“Since none could avail its benefits, it should be reviewed and reintroduced to help the hoteliers,” demanded Devinder Verma, president, Chail Hoteliers Association.

“Most hotels have taken loans from banks and will be forced to shut if no financial assistance is provided to repay the loan interest. This will lead to large-scale unemployment as hundreds of local youths have been employed in the hotels,” said Verma.

The scheme had an attractive clause. In the first two years of the repayment of the loan, 50 per cent of the interest was to be reimbursed by the state and the remaining two years of interest were supposed to paid by the borrower.

Figures from various banks revealed that about eight hoteliers had secured loans of Rs 85 lakh from a cooperative bank. From Jogindra Central Co-operative Bank, Solan, merely six could avail of the benefits though 10 to 12 had applied.

“Issues like lack of security deterred the hoteliers to avail its benefits. Since most hotels have come up in the last few years, these are yet to break even. These have a liability of several crores to the banks.

“Nearly 80 per cent of the 30 hotels in Chail and its surrounding areas have shut their operations as bookings have been cancelled from Delhi, Punjab, Haryana, Chandigarh and other Covid-hit states,” said Verma.

“Though the staff ranging from 25 to 30 had been deputed after the business was restored a few months ago, the surging Covid cases have again created uncertainty,” added Verma.

Similar situation has gripped Kasauli where roads wear a deserted look. A few tourists turned up on Sunday but none ventured to stay in hotels.

Director, Tourism, Yunus said, “A virtual meeting was held with all stakeholders in which valuable inputs have been received to re-frame the scheme. Issues like enhancing the repayment period from four to five years and other issues have been raised by them.”

He added, “An effort is being made to bring nationalised banks under its ambit as it has been observed that only co-operative banks have participated in it. The scheme has been drawn afresh and sent to the Finance Department.”