HP tourism welcomes interest subvention scheme on loans

Himachal Pradesh tourism and hospitality sector associates have welcomed the government’s interest subvention scheme on loans saying the move will help revive the tourism industry, which was severely impacted by the Covid-19 pandemic. The state government had approved the interest subvention scheme on loans in a meeting held on Thursday. Under the scheme, tourism units paying GST up to ₹1 crore will be entitled to a maximum loan of ₹50 lakh and those paying GST between ₹ 1crore up to ₹3 crore for at least one year ending March 31 will be entitled to loan up to ₹75 lakh. The units paying ₹3 crore GST will be eligible for a loan of ₹1 crore. Small registered tourism units will also be eligible for a maximum loan of ₹15 lakh. Ashwani Bamba, president of Hotel and Restaurant Association Dharamshala and state spokesperson, All Himachal Association of Hospitality and Tourism said following the Covid-19 pandemic, people associated with the tourism industry were demanding financial help from the government to revive the sector. The industry was totally shut for the past three months and its associates are finding it difficult to pay even the fixed expenses, said Bamba. “Hoteliers were finding it difficult to pay for the fixed expenses like electricity/water, insurance, taxes, staff, and bank interest payments. We had requested for working capital from the state co-operative banks at subsidised rates of interest, so we could pay our fixed expenses,” he said. This loan period will be for four years with interest subvention of 50% each for the first two years. Welcoming the government’s move Bamba said: “We are thankful to the state government for this big relief to hoteliers in this difficult time”. Meanwhile, President, Shimla Hotel and Restaurant Association Sanjay Sood said, “The government assistance was direly needed as the hotel business has been badly hurt.”