Without government subsidy, Janakeeya hotels find themselves in dire straits

The venture, which had their origin in the Hunger-free Kerala programme of the State government, were envisaged as Kudumbashree enterprises to provide affordable and quality meals to the common man

It was in the summer of 2021 that Shipra* and two others opened a Janakeeya hotel in the State capital. The COVID-19 pandemic was on, and the hotel, like other Janakeeya hotels, was a blessing for the destitute, the jobless, daily wagers, and those living below the poverty line who could tuck into hearty meals for just ₹20.

Cut to last week of November this year. After a protracted struggle to stay open, the hotel closed down temporarily following lack of funds.

The Janakeeya hotels, which had their origin in the Hunger-free Kerala programme of the State government, were envisaged as Kudumbashree enterprises that would provide affordable and quality meals to the common man. During the pandemic, the Janakeeya hotels took on the mantle of feeding the needy from the community kitchens and rapidly grew in numbers as demand soared.

It has not been smooth sailing for the much-touted programme of the State government though. The hotels are staring at yet another financial crisis for it has been eight months since they received government subsidy of ₹10 for a meal.

Shipra said she was due more than ₹7 lakh. With no funds forthcoming to pay rent, water or electricity charges, or their sole employee, they had no option but to put up the shutters for the time being, she said.

Some Kudumbashree hotels said they were on the verge of closure. An entrepreneur of a Janakeeya hotel in the city said she was due ₹16 lakh. This was not the first time that the subsidy had been delayed. It was in August that they received subsidy for the first three months of the year. Now, subsidy since April was due.

They said they had been promised funds nearly two months ago, but to no avail. “Even if we get some money, we can hold off our creditors and manage not to fold.”

Some fear even that will not be enough to stave off creditors. Others are desperate enough to keep up operations, hoping that some funds will come their way.

Kudumbashree officials said the ₹30 crore earmarked as Plan funds for Janakeeya hotels had already been distributed. They had asked for additional assistance of ₹30 crore to pay the pending subsidy and keep up with the payments this financial year. While some hotels had closed temporarily, they could avoid such a move if they started offering tea and snacks or included more special dishes in their menu to bring in more profit. Hotels that had managed to do that were doing well even without subsidy, they said.

Minister for Finance K.N. Balagopal said any request from the Kudumbashree for additional assistance would be considered and action taken. Asked if there was any move to stop the subsidy, he said he was not aware of any such plans. The government was supporting the project, he said.