New Delhi: The Federation of the Association of Hotels and Restaurants India has submitted a representation to the Minister of Finance Nirmala Sitharaman and looked for its intervention to notify the RS 60,000 Crore approved under the loan guarantee scheme for the sectors affected by Covid.
FHRAI said the number was still not released a month after the government made an announcement on June 28 and expressed disappointment that more than a month had passed since announcing the scheme but had not been informed by the Ministry of Finance.
The association also said the government had not clarified operational guidelines, or other details of the scheme so far.
This contrasts, FHRAI said, for a loan guarantee scheme which was introduced simultaneously for the health sector, which was notified and the necessary guidelines were introduced by NCGTC.
“The hospitality sector is one of the worst sectors affected by pandemics.
But the negligence of the government truly forces us to doubt the seriousness of its approach to industrial difficulties,” said Gurbaxish Singh Kohli, FHRAI.
FHRAI said the hospitality industry had faced the most severe restrictions and locking, protocols and suffered maximum losses over the past sixteen months because Covid-19 and the second wave that had never had previously destroyed the entire hospitality of the Eco-System in the country and recovery would take years year.
“Therefore we ask FM to satisfy the RS 60,000 Crore loan guarantee scheme with 100% government guarantees and long-term payment options with direct effects as an effective step to overcome the colossal damage suffered by the tourism and hospitality sector in this country,” Kohli added.
FHRAI also submits industrial complaints about many of its members from various parts of the country that reports that banks and financial institutions do not process applications delivered for loans under ECLGS 3.0 and applications for loan restructuring.
“The behavior of such financial institutions defeats the purpose of the mainstay initiative launched by the government to provide assistance to the surrounding MSMEs.
Banks and NBFC take advantage of the ceiling limit set by the RBI and are not ready to expand any concessions to the MSMEs in distress Deep.
They are equally from the fact that loans under ECLGs are fully guaranteed by the Ministry of Finance and Bank or NBFCs do not need to lose if they provide loans at the level of ownership to customers.
We urge FM to urge to intervene to provide highly assistance to MSMEs Concluded by providing loans at interest rates that are in demand, “Kohli said.