Lok Sabha Question No. 54 (UNSTARRED), answered on 2021-11-29
Subject: Plan for Revival of Indian Hotel Industry
Ministry: TOURISM
Asked by: K. Muraleedharan

## GOVERNMENT  OF INDIA

## MINISTRY  OF TOURISM

## LOK SABHA UNSTARRED  OUESTION NO.54 ANSIYERED ON 29.1 1.2021

## PLAN FOR REVIVAL OF INDIAN HOTEL INDUSTRY

54.  SHRI K. MURALEEDHARAN:

Will the Minister of TOURISM be pleased  to state:

- (a) whether Government has evolved any plan for revival of lndian hotel industry sector that remains collapsed due to the Covid-{9 pandemic;
- (b) if so, the details thereof; and
- (c) the details of number of star hotels closed due to running loss in the pandemic period?

## ANSWER

## MINISTER OF TOURISM

(sHRr G. KTSHAN REDDY)

- (a) & (b): Yes, Sir. The Government  of India has announced various fiscal and regulatory  relief measures to support the lndian hotel sector from the impact of the GOVID-19 pandemic. The details of the same are given at Annexure.
- (c): The Ministry of Tourism does not compile details of number of star hotels closed due to running loss in the pandemic period.

STATEMENT !N REPLY TO PARTS (a) and (b) OF LOK SABHA UNSTARRED  QUESTION NO.54 ANSWERED ON  29.11.20.21

REGARDING PLAN FOR REVIVAL OF INDIAN HOTEL INDUSTRY.

## FISGAL AND RELIEF MEASURES ANNOUNCED BY THE GOVERNMENT

TO SUPPORT THE INDIAN HOTEL INDUSTRY

The following are the various fiscal and relief measures announced by the Government,  expected to benefit the lndian Hotel lndustry:

- l. The Government announced Atmanirbhar Bharat Package vide which Rs.3.OO lakh crore collatera!  free automatic loan has been made available for MSMEs. The loan wi!! have *  yean tenure and l2-month moratorium.
2. It. The Govemment waived off Provident Funds (PF) contribution  for three months for organisations  with less than {OO pax and 9O% of thear employees earn below Rs.l5OOO.
3. llt. Under Atmanirbhar Bharat package, PF contribution  of both employer and employee has been reduced to lO% each from existing 12o/o each for all establishments  covered by EPFO for three months
4. tv. Deferment of TGS up to Octobet 2O2O.
5. Y.
6. Retum filing deferred for three months with no penal interest for companies up to Rs.S.OO Grore, rest @ 97o penal interest.
- vl. The Gentral government  also gave relief from various regulatory compliances under lncome Tax Act, companies Act and GST Act for varying period in the wake of GOVID-19 crisis to ensure business continuity and survival.
8. v . The RBI extended moratorium on term loans till 3l't December
9. 2o2l,.
10. v  l. The Gentral Government has also given relief from various
11. regulatory compliances  under lncome Tax Act, Gompanies  Act and GST Act for varying periods in the wake of Govid-19 crisis to ensure business continuiQr and survival.
12. tx. The Government announced  the Emergency Gredit Line Guarantee
13. Scheme (ECLGS) 3.O on 31.3.2021 to support eligibte Micro, Small

and Medium Enterprises (MSMEs)  and business enterprises in meeting their operational liabilities and restarting  their business. The scope of the scheme was enlarged to cover business enterprises in Hospitality,  Travel & Tourism and Leisure & Sporting sectors. The validiQr of EGLGS (ECLGS  l.O, EGLGS 2.O & EGLGS 3.O) was extended up to 3O.06.2o.21 or ti!! guarantees  for an amount of Rs. 3.OO lakh crore are issued. Last date of disbursement  under the scheme was extended to 3O.O9.2O21. The details of guarantees  issued under the scheme are given below:

| Emergency Gredit Line Guarantee Scheme (ECLGS) Tourism and Hospitality Scheme wise data as on 3O.O9.2O21   | Emergency Gredit Line Guarantee Scheme (ECLGS) Tourism and Hospitality Scheme wise data as on 3O.O9.2O21   | Emergency Gredit Line Guarantee Scheme (ECLGS) Tourism and Hospitality Scheme wise data as on 3O.O9.2O21   | Emergency Gredit Line Guarantee Scheme (ECLGS) Tourism and Hospitality Scheme wise data as on 3O.O9.2O21   |
|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
| lndustry Nature                                                                                            | Support Under                                                                                              | No. of Guarantees !ssued                                                                                   | Amount of Guarantees issued on account of loans sanctioned under the scheme (in Rs. crore)                 |
| Travel Tourism and                                                                                         | ECLGS 3.O                                                                                                  | 2 , 732                                                                                                    | 1371.62                                                                                                    |
| Hospitality                                                                                                | EGLGS 3.O                                                                                                  | 3,160                                                                                                      | 5,43O.96                                                                                                   |
| Hotels, Restaurants, Tourism                                                                               | ECLGS 2.O                                                                                                  | 218                                                                                                        | 3,403.90                                                                                                   |
| Tourism, Hotels & Restaurants                                                                              | ECLGS {.O                                                                                                  | 96,219                                                                                                     | 35s9.43                                                                                                    |
| Total                                                                                                      |                                                                                                            | 1 , 02 329                                                                                                 | 13,765.91                                                                                                  |

- x. Ministry of Finance has given concurence to release Service Exports from lndia Scheme (SEIS) scrips on 16.O6.2021, Eanlie4 several lndustry stakeholders  had flagged appeals to  the Govemment to release SEIS Scrips tor 2O19-2O and DGFT had put a detailed proposal  for the allocation for SEIS for expotts made during 2O19-2O. Taking all circumstances into account, the Department of  Expenditure, Ministry of  Finance has given concurrence to the proposal of Department  of Gommerce for continuation  of SEIS tor 2O19-2O with a financial allocation of Rs.2O6l  crore subject to the condition that the amount will be provided  through Expenditure Budget following the procedure  of providing  a New Minor Head.
2. xa. On 28s June 2021, the Government announced  a stimulus  package to boost diverse sectors of economy affected by GOVID-{9 pandemic and provide impetus for growth and employment measures.  The package comprises a total of l7 measures  in three broad categories,  which included  'Economic  relief from Pandemic, with special focus on health and reviving travel and tourism
3. sectonst and'lmpetus for Growth and employment'.
4. 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.
5. xii.
- xiii. With a view to prepare  for a post-GOVID 19 revival, the Ministry has formulated  and issued detailed operational  guidelines for Govid safeQr and hygiene for hotels, restaurants, B&Bs/Homestays and Tourism Service Providers on O8.O6.2O2O  to facilitate smooth resumption of business.
7. xiv.
8. 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.
- xv. With an aim to incentivize  stakeholders  in the Tourism industry,
10. 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. Additiona!  promotional activaties have been incorporated  including online promotions  and the extent of financial assistance pemissible  has been enhanced.
- xvi. ValidiQr of  approyal or  certification of  hotels and other accommodation units whose proiect approyal/re-approval and classification/re-classification have expired/were likely to expire has been extended up to 3l't idlarch 2022.
- xvii. The Guidelines  of  the  Marketing Development  Assistance Programme under the Overseas Promotion and PubliciQr 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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