Govt to support sustainable recovery in tourism, says Minister
Tourism Minister G Kishan Reddy has welcomed the Government’s announcement to enhance the limit of Emergency Credit Line Guarantee Scheme (ECLGS) by Rs.50,000 crore from Rs.4.5 Lakh crore to Rs.5 Lakh crore exclusively for enterprises in hospitality and related sectors.
“This decision is timely as the demand for these services is picking up,” he said on 18 Aug 2022, pointing out that the ongoing pandemic has adversely impacted the hospitality and tourism related sectors severely.
“We are planning to support the sustainable recovery of tourism, shifting to eco-tourism and rethinking tourism for the future.”
The enhancement is expected to provide much needed relief to enterprises in these sectors by incentivizing lending institutions to provide additional credit of up to Rs.50,000 crore at low cost, thereby enabling these business enterprises to meet their operational liabilities and continue their businesses.
Loans of about Rs.3.67 Lakh crore have been sanctioned under ECLGS till 5 Aug 2022.
Tourism and hospitality play a pivotal role in economic development and the central government has been actively engaging with industry and other stakeholders to revive the economy, he said.
He also appreciated the extension of Emergency Credit Line Guarantee Scheme validity till 31 March 2023.
The ongoing pandemic has adversely impacted contact-intensive sectors, especially the hospitality and related sectors more severely. While other sectors were back faster on the path of recovery, demand continued to be subdued for these sectors for a longer period, suggesting the need for suitable interventions for their sustenance and recovery.
Further, given their high employment intensity and their direct and indirect linkages with other sectors, their revival is also necessary for supporting overall economic recovery.
With high immunization levels, progressive roll-back of restrictions and overall economic recovery, conditions are in place for sustained growth in demand for these sectors as well.
This additional guarantee cover is expected to support the recovery of these sectors as well, said the Minister. fiinews.com
