Apex Hotel Organization Writes Finance Minister, Loan Guarantee Program Not Notified One Month After Announcement | India News



NEW DELHI: The Federation of Hotel and Restaurant Associations of India submitted a representation to Minister of Finance Nirmala Sitharaman and requested his intervention to notify the Rs 60,000 crore sanctioned under the loan guarantee program for sectors affected by Covid.
The FHRAI said the amount had still not been released a month after the government made the announcement on June 28 and expressed disappointment that more than a month has passed since the program was announced, but has yet to be notified by the finance ministry.
The association also said the government had not clarified operational guidelines or any other details of the program so far. This contrasts, according to the FHRAI, with the simultaneously introduced loan guarantee scheme for the health sector, which was notified and the necessary guidelines introduced by the NCGTC.
“The hospitality sector is one of the sectors most affected by the pandemic. But the negligence of the government really makes us doubt the seriousness of its approach to the difficulties of the industry”, said Gurbaxish Singh Kohli, vice-president of the FHRAI.
The FHRAI said the hospitality industry has faced the most severe restrictions and blockages, protocols and suffered peak losses over the past sixteen months due to Covid-19 and that an unprecedented second wave has destroyed the entire hotel ecosystem in the country and that recovery will take many years.
“We therefore ask the FM to kindly notify the Rs 60,000 crore loan guarantee program with 100% government guarantee and long-term repayment options with immediate effect as an effective measure to remedy the colossal damage. suffered by the tourism and hospitality industry in the country, “Kohli added.
The FHRAI also raised industry grievances regarding many of its members in different parts of the country, stating that banks and financial institutions do not process ECLGS 3.0 loan applications and applications. loan restructuring.
“Such behavior by financial institutions defeats the very purpose of the flagship initiatives launched by the government to assist besieged MSMEs. Banks and NBFCs take advantage of the cap set by the RBI and are not prepared to give any concession to MSMEs who are in great distress, regardless of the fact that ECLGS loans are fully guaranteed by the MoF and that banks or NBFCs have nothing to lose if they grant loans at concessional interest rates to clients. We urge the FM to intervene urgently to relieve the very besieged MSMEs by granting them loans at concessional interest rates, “Kohli said.


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