New Delhi, November 14, 2020: Apex hospitality industry body Federation of Hotel & Restaurant Associations of India (FHRAI) on Friday welcomed the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) but said the hospitality sector requires specific stimulus package to come out of distress. Finance Minister Nirmala Sitharaman on Thursday announced the extension of ECLGS till March 31, 2021.
“The ECLGS is the only respite that the hospitality industry has received from the government so far. We cannot stress on this enough; hospitality is not like other industries,” FHRAI VP Gurbaxish Singh Kohli said.
He added that it is highly capital- and labour-intensive sector, and without a specific stimulus, the sector will continue to bleed.
Travel, tourism and hospitality are the worst-affected sectors, not only in India but across the world, he added.
“We once again request the government to understand the industry’s fragility at present and offer us the much-needed support,” Kohli said.
The FHRAI also said the extension offers only a marginal benefit to the industry according to the reports published in economictimes.indiatimes.com.
“The government has allowed businesses to avail loan restructuring to help them recover from the hit they took during the lockdown. The hospitality industry is also eligible for it.
“However, the banks are reluctant to service us. This is because our business, unlike businesses in other industries, is seasonal,” FHRAI Joint Honorary Secretary Pradeep Shetty said.
