Telangana: RBI package fails to cut ice with hospitality players

Reserve Bank of India
x

Reserve Bank of India

Highlights

Rs 15,000 crore Covid Relief Package for contact-intensive sectors like hotels, restaurants, tourism and travel industry, announced by the RBI, has not brought no cheers to this sector

Hyderabad: Rs 15,000 crore Covid Relief Package for contact-intensive sectors like hotels, restaurants, tourism and travel industry, announced by the RBI, has not brought no cheers to this sector.

Talking to The Hans India, Telangana Tour and Travel operators said the stimulus packages were only an eyewash as the industry did not get any relief post-lockdown 1.0. "One tends to hear sweet talk in form of lectures from the Union Government, but it never transforms into reality. First, the banks do not give loans so easily.

This was seen after the first wave. Now the situation would be worse as many of their members could not repay the earlier loans due to the first and second wave which had led to zero business, an Association leader said.

Travel and Tour Operators Organisation leader MD Moiz reeled out the plight of the travel industry and said that even after the first wave, the stimulus package announced by the Centre remained mostly on paper. "The fresh RBI announcement will also be of no use for the industry unless the banks come forward and extend loans liberally.

The officials of the banking sector said that RBI has announced the financial packages to the intensive contact sector which already bore the brunt of two consecutive lockdowns in 2020 and 2021. The survival of the industry depends on the free movement of people," he said.

Extending the financial package to the sick industry without any guarantee of business prospects and returns will put the financial institutions in high risk. The banks were already experiencing a liquidity crisis due to a slowdown in the economy since the first wave across the country.

The available financial resources are being utilised in a disciplined manner. The banks were giving priority to lend money to the organised sectors like IT, construction, automobile and manufacturing sectors. "Services sector mainly the hospitality, tourism and travel are given less importance in the disbursement of loans because the chances of returns are remote," he said. The travel and hospitality sector will get adequate financial support only after its activities were revived fully.

Telangana Hotels, Restaurants and Hospitality Association President S Venkat Reddy said that several managements availed bank loans soon after lockdown 1.0 last year and made efforts to restore the business prospects.

In lockdown 2.0, the industry has collapsed. The RBI package would not help the industry unless the government waives interest on loans taken earlier and announce any sops and subsidies.

The Association, it may be mentioned here, has requested the State Government to waive property taxes, subsidy on power bills, and payment of professional taxes and provident funds of the employees.

Yet, no positive response was received. They further said so far only an announcement has been made but guidelines were yet to be announced.

Show Full Article
Print Article
Interested in blogging for thehansindia.com? We will be happy to have you on board as a blogger.
Next Story
More Stories