Federation of Hotel and Restaurant Associations of India (FHRAI) has urged the finance ministry to notify the loan guarantee scheme for COVID affected sectors. In June, Finance Minister Nirmala Sitharaman had announced a relief package targeting healthcare, tourism, exports and job creation to support the economy that is struggling to recover from the pandemic's second wave. According to the package, loan guarantees worth Rs 1.1 lakh crore will be offered to COVID-affected sectors.
According to FHRAI, it has been over a month since the announcement of the scheme, but there has been no notification by the finance ministry yet. The association claimed that neither the operational guidelines nor any other details of the scheme have been announced by the ministry so far. However, FHRAI said the loan guarantee scheme that was introduced simultaneously for the health sector was notified and the necessary guidelines have been introduced by the National Credit Guarantee Trustee Company (NCGTC).
It further said that the Hospitality sector is one of the worst affected sectors by the pandemic. But the government's negligence really compels it to doubt the seriousness in its approach towards the industry's hardships. The hospitality industry has faced severest restrictions and lockdowns, protocols, and suffered maximum losses during the last sixteen months due to COVID-19. The unprecedented second wave has caused a strong ripple effect that has destroyed the entire hospitality ecosystem in the country.
