Unlike manufacturing units which are still running with a reduced capacity of about 30%, the hospitality industry remains completely shuttered. With no business and income, the hospitality sector is urging the state government to defer the payment of fixed electricity charges and allow them to pay at industrial rates as per their status.
“Before the outbreak hit India last year, and the lockdowns started from latter half of March, the hotels had normal business. So the industry had some money to see through them after the lockdowns were clamped down. But now, the situation is very difficult. The government should look at offering the industry some relief, at least in waving the fixed power charges,” said Surendra Singh Shahpura, executive member of Federation of Hospitality and Tourism of Rajasthan (FHTR).
He said the industry has already started receiving average electricity bills at a time when they have no business income or any funds with them to pay.
Last year, the state government had allowed the hotels and restaurants deferred payments for two months, but after that they received the bills to pay at one go instead of staggered way.
Abhishek Mishra, director at a city hotel, said, “First of all, the electricity rates in Rajasthan are one of the highest in the country. Secondly, despite being declared as an industry, the hotels are made to pay at commercial rates. It’s high time for the government to offer industry benefits to the hospitality sector. And no time could be better than now as the industry is facing one of its existential moments.”
Some states like Maharashtra have already started offering industry status to hospitality sector. After continuous demand from the industry, the state finance department has also given directions to the tourism department to prepare a proposal for it.
“We urge the government to expedite the process and announce the decision. The industry needs relief right now. We have filed all taxes for last year and renewed our various licences for the new financial year and are left with no money,” added Shahpura.
Mishra said there are many city hotels, unlike resorts on outskirts, that neither got the wedding business in the last quarter of 2020 nor tourists. “The situation is worse for such hotels. We don’t have money to deposit instalments. There is risk of the units being declared as NPAs,” added Mishra.
