Lok Sabha Question No. 1218 (UNSTARRED), answered on 2021-12-06
Subject: Financial Relief to Tourism Industry
Ministry: TOURISM
Asked by: Poonam (Mahajan) Vajendla Rao

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA

## UNSTARRED QUESTION NO.1218

## ANSWERED ON 06.12.2021

## FINANCIAL RELIEF TO TOURISM INDUSTRY

## 1218. SHRIMATI POONAM MAHAJAN:

Will the Minister of TOURISM be pleased to state:

- (a) whether it is a fact that the National Restaurant Association of India, travel and tourism associations and other associations have submitted representations to the Government for providing financial relief to the industry to mitigate the fixed operating costs;
- (b)
- if so, the details thereof;
- (c) the response of the Government on these representations;
- (d) whether it is also a fact that the Government would consider deferment of all statutory dues at the Central and State level, moratorium  on  bank  loans  and  general  invocation  of  force majeure clause in view of the global pandemic;
- (e) if so, the details thereof; and
- (f) the time by which the final decision in this regard is likely to be taken?

## ANSWER

MINISTER OF TOURISM

(SHRI G. KISHAN REDDY)

(a) to (f): All representations for relief measures received from the hospitality  stakeholders  have  been  taken  up  with  the  concerned Ministries  and  Departments  of  Government  of  India  and  State Governments/Union Territory Administrations for necessary action at their end.

The details of fiscal & relief measures announced by the Government to support the hospitality and tourism industry are at Annexure.

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## ANNEXURE-I

STATEMENT  IN  REPLY  TO  PARTS  (a)  to  (f)  OF  LOK  SABHA UNSTARRED QUESTION NO.1218 ANSWERED ON 06.12.2021

REGARDING FINANCIAL RELIEF TO TOURISM INDUSTRY

FISCAL AND RELIEF MEASURES ANNOUNCED BY THE GOVERNMENT TO SUPPORT THE INDIAN TOURISM & HOSPITALITY INDUSTRY

The following are the various fiscal relief measures announced by the Government, expected to benefit the Indian Hotel Industry:

- i. The Government announced Atmanirbhar Bharat Package vide which Rs.3 lakh crore collateral free automatic loan has been made available for MSMEs. The loan will have 4- year tenure and 12-month moratorium.
- ii. The Government waived off PF contribution for three months for  organisations  with  less  than  100  pax  and  90%  of  their employees earn below Rs.15000.
3. Under  Atmanirbhar  Bharat  package,  PF  contribution  of  both employer and employee has been reduced to 10% each from existing 12% each for all establishments covered by EPFO for
- iii. three months
- iv. Deferment of TCS up to October 2020.
- v. Return filing deferred for three months with no penal interest for companies up to Rs.5 Crore, rest @ 9% penal interest.
- vi. The Central government also gave relief from various regulatory compliances under Income Tax Act, companies Act and GST Act for varying period in the wake of COVID-19 crisis to ensure business continuity and survival.
- vii. The RBI extended moratorium on term loans till 31st
9. December 2020.
- viii. Suitable  provision  for  funds  for  implementing  the  Service Exports from India Scheme (SEIS) for services rendered in FY 2019-20 made by the Ministry of Finance.
- ix. The Government of India has launched Emergency Credit Line Guarantee  Scheme  (ECLGS)  to  support  eligible  Micro,  Small and Medium Enterprises (MSMEs) and business enterprises in
12. meeting their operational liabilities and restarting their business.
- x. The Government announced the Emergency Credit Line Guarantee Scheme (ECLGS) 3.0 on 31.3.2021. The scope of the scheme was enlarged to cover business enterprises in Hospitality, Travel & Tourism and Leisure & Sporting sectors.
- xi. The details of guarantees issued under the scheme are given below:

Emergency Credit  Line  Guarantee  Scheme  (ECLGS)  Tourism and Hospitality Scheme wise data as on 30.09.2021

| Industry Nature               | Support Under   | No. of Guarantees Issued   | Amount of Guarantees issued on account of loans sanctioned under the scheme (in Rs. crore)   |
|-------------------------------|-----------------|----------------------------|----------------------------------------------------------------------------------------------|
| Travel and Tourism            | ECLGS 3.0       | 2,732                      | 1,371.62                                                                                     |
| Hospitality                   | ECLGS 3.0       | 3,160                      | 5,430.96                                                                                     |
| Hotels, Restaurants, Tourism  | ECLGS 2.0       | 218                        | 3,403.90                                                                                     |
| Tourism, Hotels & Restaurants | ECLGS 1.0       | 96,219                     | 3559.43                                                                                      |
| Total                         |                 | 1,02,329                   | 13,765.91                                                                                    |

- xii. The  validity  of  ECLGS  (ECLGS  1.0,  ECLGS  2.0  &  ECLGS  3.0) was extended upto 30.06.2021 or till guarantees for an amount of Rs. 3 lakh crore are issued. Last date of disbursement under the scheme was extended to 30.09.2021.
- xiii. On 16.06.2021, Hon'ble Finance Minister announced release of SEIS scrips for 2019-20.
- xiv. Financial  support  under  the  'Loan  Guarantee  Scheme  for Covid  Affected  Tourism  Service  Sector  (LGSCATSS)'.  The scheme will  cover  Regional  Level  Tourist  Guides  recognised

by the Ministry of Tourism and Tourist Guides recognised by the  State  Governments/  UT  Administrations  and  Travel  and Tourism  Stakeholders  (TTS)  recognized  by  the  Ministry  of Tourism.  TTS's  will  be  eligible  to  get  a  loan  upto  Rs.  10.00 lakh  each  while  tourist  guides  can  avail  loan  upto  Rs.  1.00 lakh  each.  There  will  be  no  processing  charges,  waiver  of foreclosure  /  prepayment  charges  and  no  requirement  of the

- additional collateral. Scheme  to  be  administered  by Ministry of Tourism through NCGTC.
- xv. Free  Tourist  Visa  to  5.00  Lakh:  As  per  the  announcement, once Visa issuance is restarted, the first 5 lakh Tourists Visas will be issued free of charge. The benefit of free of charge visa will be available only once per tourist during the issuance of the first 5 lakh tourist visas (free of charge visas). The scheme will be applicable till 31st March 2022 or till 5,00,000 visas are issued, whichever is earlier.
- xvi. Ministry  of  Finance  has  given  concurrence  to  release  SEIS scrips  on  16.06.2021.  Earlier,  several  Industry  stakeholders had flagged appeals to the government to release SEIS Scrips for  2019-20  and  DGFT  had  put  a  detailed  proposal  for  the allocation for SEIS for exports made during 2019-20. Taking all circumstances  into  account,  the  Department  of  Expenditure, Ministry of Finance has given concurrence to the proposal of Department of Commerce for continuation of SEIS for 2019-20 with  a  financial  allocation  of  Rs.2061  crore  subject  to  the condition that the amount will be provided through Expenditure  Budget  following  the  procedure  of  providing  a New Minor Head.
- xvii. Vide notification dated 26th April 2021, 'Exhibition-cumConvention  Centre'  has  been  included  in  the  Harmonized Master List of Infrastructure Sub-sectors by insertion of a new item in the category of 'Social and Commercial Infrastructure ' , with a footnote defining Exhibition-cumConvention Centre.
- xviii. On  28th  June  2021,  the  Government  announced  a  stimulus package  to  boost  diverse  sectors  of  economy  affected  by
- COVID-19  pandemic  and  provide  impetus  for  growth  and employment measures. The package comprises a total of 17 measures in three broad categories, which included 'Economic relief from Pandemic,  with special focus on health and reviving  travel  and  tourism  sectors'  and  'Impetus  for  Growth and employment'.
- xix. On  12th  November  2020,  the  Government  announced  the Aatmanirbhar Bharat RozgarYojana- to incentivize job creation during COVID-19 recovery. The Aatmanirbhar Bharat RozgarYojana has been extended till 31st March 2022.
- xx. Operational Recommendations for safe resumption of business with  easing  of  lockdown  restrictions  have  been  issued  for various  segments  of  the  travel  and  hospitality  industry  and circulated amongst all stakeholders.
- xxi. With  a  view  to  prepare  for  a  post-COVID  19  revival,  the Ministry has formulated and issued detailed operational guidelines for Covid safety and hygiene for hotels, restaurants, B&Bs/Home stays and Tourism Service Providers on 08.06.2020 to facilitate smooth resumption of business.
- xxii. An initiative called SAATHI (System for Assessment, Awareness  &  Training  for  Hospitality  Industry)  has  been developed,  for  effective  implementation  of  Guidelines/SOPs issued with reference to  COVID-19  and  beyond  for  safe operations of Hotels, restaurants, B&Bs and other units.
- xxiii. Further, the Ministry of Tourism has issued modified guidelines for Recognition of Tourism Service Providers dated 08.12.2020 which  are  effective  from  January  2021.  As  per  the  modified guidelines,  Category  of  Greenshoot  /  Start-up-  Agencies  is being introduced for the first time. This is in keeping with the policy of the Govt. of India for encouraging Start-Ups and will also further the cause of 'Atmanirbhar India'.
- xxiv. With an aim  to incentivize stakeholders in the  Tourism industry, the Guidelines for the Scheme of Market Development Assistance (MDA) for providing financial support to  stakeholders  for  the  promotion  of  Domestic  Tourism  have been modified to enhance the scope and reach of the scheme,

so  as  to  provide  maximum  benefits  to  the  stakeholders. Additional promotional activities have been incorporated including  online  promotions  and  and  the  extent  of  financial assistance permissible has been enhanced.

- xxv. Recognising the fact that revival in the tourism sector will be largely spearheaded by Domestic tourism, the Ministry initiated  arranging  a  series  of  webinars  under  the  overall theme  of DekhoApnaDesh.  The  objective is to generate awareness  and  at  the  same  time  sustain  interest  amongst stakeholders, students and the general public.
- xxvi. Validity  of  approval  or  certifications  of  hotels  and  other accommodation units whose project approval/re-approval and classification/re-classification have expired/were likely to expire, has been extended upto 31 st  March, 2022.
- xxvii. Recognition of Travel Agents, Tour Operators, Tourist Transport  Operators  by  the  Ministry  of  Tourism  has  been extended  automatically  by  six  months.  Those  who  have submitted  applications  for  recognition  by  the  Ministry  have been  given  provisional  recognition  for  six  months,  pending completion of required procedures.
- xxviii. The  Guidelines  of  the  Marketing  Development  Assistance Programme  under the Overseas Promotion and Publicity Scheme has been modified to enhance the scope and reach of the  scheme,  so  as  to  provide  maximum  benefits  to  the stakeholders in the tourism industry.

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