HP tourism, hospitality sector associates welcome interest subvention scheme on loans

The Himachal Pradesh government on Thursday approved an interest subvention scheme on loans. Ashwani Bamba, President, Hotel and Restaurant Association Dharamshala and state spokesperson, All Himachal Association of Hospitality and Tourism said following the COVID-19 pandemic the people attached to the tourism industry were demanding financial help from the government to revive the sector.


PTI | Dharamshala | Updated: 26-06-2020 13:01 IST | Created: 26-06-2020 13:01 IST
HP tourism, hospitality sector associates welcome interest subvention scheme on loans
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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, that was severely impacted by the COVID-19 pandemic. The Himachal Pradesh government on Thursday approved an interest subvention scheme on loans.

Ashwani Bamba, President, Hotel and Restaurant Association Dharamshala and state spokesperson, All Himachal Association of Hospitality and Tourism said following the COVID-19 pandemic the people attached to 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, Bamba told PTI.

"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 a working capital from the state co-operative banks at a subsidised rates of interest, so we could pay our fixed expenses," he said. Under the Interest Subvention Scheme, tourism units paying GST up to Rs 1 crore will be entitled for maximum loan of Rs 50 lakh and those paying GST between Rs 1 crore and Rs 3 crore for at least one year ending March 31, 2020 will be entitled for loan up to Rs 75 lakh.

Units paying GST above Rs 3 crore will be eligible for loan of Rs 1 crore and small registered tourism units will also be eligible for maximum loan of Rs 15 lakh. This loan period will be for four years with interest subvention of 50 per cent each for the first two years.

Welcoming the government's move Bamba said "we are thankful to the government of HP for this big relief to hoteliers in this difficult time"..

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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