Representatives from the Federation of Lodge & Restaurant Associations of India met Finance Minister Nirmala Sitharaman on Thursday and sought granting of infrastructure standing to the hospitality business within the forthcoming Finances.
At present, resorts constructed with an funding of Rs 200 crore or extra have been accorded infrastructure standing underneath the RBI infrastructure lending norm standards. The affiliation has requested that this threshold be introduced all the way down to Rs 10 crore to offer a fillip to finances phase resorts.
This can allow resorts to avail time period loans at decrease charges of curiosity and likewise profit from longer reimbursement durations. It has additionally requested for hospitality to be categorized as an business that is relevant throughout the nation and create a corpus that compensates states for any notional loss, the affiliation argued.
“FHRAI put forth to the minister particular requests with particular emphasis on granting infrastructure standing to the hospitality business,” a launch said.
The affiliation additionally sought the continuation of the Export Promotion Capital Items Scheme (EPCGS) for one more 10 years and an extension on the reimbursement interval underneath the Emergency Credit score Line Assure Scheme (ECLGS).
The affiliation has additionally requested for the Emergency Credit score Line Assure Scheme (ECLGS) mortgage time period for the hospitality sector to be prolonged for a most interval underneath the present provisions.
The affiliation has requested that the reimbursement interval be both enhanced to 10 years or as per the mortgage reimbursement interval of the principal mortgage, whichever is longer, it stated.