Keypoints:
- Hotels in Maharashtra have written down a letter to PM Modi seeking bailout package for lockdown period.
- To avoid NPA (non-performing asset) situation, along with the hoteliers, retailers have also written to Finance Minister for relaxation in various fees.
- During the previous lockdown, the hospitality sector has witnessed a major setback.
The previous lockdown had cornered the businesses of hospitality sectors leading them towards losses. Hence, during this lockdown, hotels and retailers in the state have written a letter to Prime Minister Narendra Modi seeking a bailout package to tackle this lowdown period to save the industry from a long-term impact. Retailers have written to the Finance Minister for relaxation in various fees to avoid NPA (Non-profit situation).
During the previous Lockdown, the hospitality sector had witnessed a major setback. A letter by AHAR President Shivanand Shetty has said that, “We had just started rebuilding our businesses gradually despite a lack of assistance from both the central and state governments. But the prevailing situation is leading to reverse migration of the workforce all over again. This may result in a massive job loss not only in the hospitality trade but also across ancillary services.”
In his appeal, Shetty has said that, “We seek immediate bailout package that includes collateral free loans at normal interest rate with moratorium of one year on existing loans, onetime tax rebate equivalent to 50% of wages payable for the period of lockdown, contributions to Employees Provident Fund and Employees Insurance Schemes for the next six months, and deferment of direct and indirect tax liabilities by six months to one year.”
To prevent the retail sector to slip in long-term financial damage, Retailers Association of India (RAI) has sought immediate intervention of the finance minister.
Kumar Rajagopalan, CEO, RAI, said, “As of now, almost 80% of the retail stores are closed due to various restrictions. The cash inflow of the industry has come to a standstill, while the fixed operating costs remain intact.”
His recommendations include extending fund benefits under the emergency credit line guarantee scheme, a moratorium on principal and interest for six months, and ad-hoc working capital loans of 30% more than current limits so that critical payments like salaries and wages can be made, among others.
