September 2020 \ Business & Investment \ BUSINESS AND GOVERNANCE
CII seeks reopening of hotels

Industry chamber CII has urged the Centre ...

The CII suggested banquets and convention centres be allowed to host meetings, conferences, seminars, social functions, among others, with no restrictions of numbers but linked to the size of the banquet hall, with 36 square feet per person as safe social distancing for such gatherings. Among the measures of liquidity enhancement, it has sought waiver of all fixed charges for the period of lockdown including for electricity, water, LPG, and property tax. A deferment for 12 months of all statutory dues, post the waiver period has also been sought. Further, the industry body has also sought the extension period for licenses, to be renewed at the end of 2020, should be extended to the following year, 2021.

It noted that while one-time restructuring of loans has been announced and its contours will be unveiled in a while, as per the RBI, tourism industry-wise Deployment of Gross Bank Credit is Rs 45,000 crore as of January 2020 and when compared to other major industries, this is a very small number. “Helping with long-term moratorium (beyond August), interest rate reduction and/or longer repayment schedules for these obligations can aid in assisting/salvaging the entire industry,” said the letter signed by Puneet Chhatwal, Chairman, CII National Committee on Tourism & Hospitality and Deep Kalra, Co-Chairman of the committee.