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    Govt taking all possible steps to mitigate damage to tourism and hospitality sector: Sanjeev Sanyal to FHRAI

    Synopsis

    FHRAI had informed Sanyal about reservations and non-cooperation of banks in extending the one-time restructuring of loans announced by the government and requested for his intervention in getting the issue resolved. "I agree that structural reforms with centralized rules and regulations are required for the industry. I ask that the industry offers solutions and we’ll jointly try to resolve 80% of the problems," Sanyal said.

    (Sanjeev Sanyal)
    New Delhi: The government is aware of issues and hardships faced by the tourism and hospitality sector and assures the industry that it is taking all possible steps to mitigate the damage to the sector, said Sanjeev Sanyal, principal economic advisor, Ministry of Finance in a webinar hosted by industry body Federation of Hotel & Restaurant Associations of India (FHRAI).

    "I would ask the industry to flag specific cases and details of the banks, so that we can take measures to address and resolve the issues. I also ask that the association brings to our attention any specific instances where banks are not following the directions of the RBI or the finance ministry and we will take appropriate action," he added.

    FHRAI had informed Sanyal about reservations and non-cooperation of banks in extending the one-time restructuring of loans announced by the government and requested for his intervention in getting the issue resolved.

    "I agree that structural reforms with centralized rules and regulations are required for the industry. I ask that the industry offers solutions and we’ll jointly try to resolve 80% of the problems," Sanyal said.

    "In the order of priorities, let’s do the minimum amount to obtain maximum benefit, no laundry list. Inform the government of the impact of rules and what would solve the problems. The simplest way would be to take examples from the rest of the world where the systems are working successfully,” he added. Gurbaxish Singh Kohli, vice president, FHRAI said the industry has put forth the most critical aspects and issues compounding the sector's woes. "We presented to him the revenue projections which indicate a loss of Rs 1.6 lakh crore and job losses mounting to 5.5 crore if the sector is not revived. With no revenues, but rentals, salaries, statutory bills still to be paid, the industry may succumb by year end," he added. Sanyal suggested focusing on issues that need the most urgent attention like restructuring of existing debts which would require financial restructuring by the banks, bringing back people from their homes to their jobs and specific policies related to the hospitality sector. For faster and effective turnarounds, he advised the association to identify solutions within the existing systems.

    "The conversation was mostly focused on the much needed one-time restructuring of loans with banks and the issues we are facing in getting it executed. We have recommended that it would do much good to the industry if a single window for redressal with the RBI were to be instated for specific issues,” said Pradeep Shetty, joint secretary, FHRAI.
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    1 Comment on this Story

    Bilu 50 days ago
    Give the portfolio to Miss Kiran Bedi. She only can revive tourism sector. The rest will be as null and void as Late Jaitley and present Sitaraman
    The Economic Times