Industry chamber Federation of Indian Chambers of Commerce & Industry (FICCI) on Wednesday urged the government to provide support measures for the travel, tourism and hospitality industry which is facing liquidity crisis on account of the COVID-19 pandemic.
The industry has come to a halt due to the pandemic which has resulted in many hotels and businesses closing down and job losses for many of those who depended on this industry for their livelihood.
"Health experts have predicted that a third wave of COVID-19 is inevitable. The government needs to act now and provide immediate relief measures to resolve the urgent liquidity crisis faced by the industry," the chamber said in a statement.
It has appealed for a moratorium on all working capital, principal, interest payments, loans and overdrafts which ended in August 2020, to be extended by another one year.
"With the continued impact of the second wave, it will take a minimum of 4-5 years for the hotel industry to see a return to some semblance of normalcy in its operations," it said adding in this situation, the period of restructuring and the ratios needs to be reviewed.
FICCI has also requested the government to increase the repayment tenure of the Emergency Credit Line Guarantee Scheme (ECLGS) to eight years.
Further it suggested that tourism should be included in the concurrent list of the Constitution so that both the Centre as well as the States can frame policies for its growth.
