KHARA demands loan waiver

‘GoI package fails to revive tourism sector in Valley’

BILAL HUSSAIN

SRINAGAR: The Valley hoteliers under the banner of Kashmir Hotel and Restaurant Association (KHARA) today demanded Jammu and Kashmir government to waive of advances to hoteliers for revival of their business by the various banks operational in the valley.

According to the KHARA the Government of India while realizing the plight and importance of Tourism Industry of Kashmir, granted a package— Prime Minister’s Soft Loan Package— for ‘Generation of employment through revival of Tourism’ vide Government of India (Department of Tourism) notification No. 13(18)/2003-MRD dated September 8, 2003.

The President KHARA, Siraj Ahmad, while giving details about the package told Kashmir Times that the implementation process of the said package was simple and straight as envisaged in its guidelines. “The package failed to review the tourism sector in the Valley,” he lamented.

The guidelines envisage: A Coordination Committee would be set up with Secretary (Tourism) Govt. of Jammu and Kashmir as the Chairman and State level representatives of the banks. This committee would approve the cases which would be eligible for the benefit under scheme. All these cases should be brought up before the Committee after the banks have sanctioned the loans. The Committee would also submit its recommendation to Department of Tourism, Government of India (GoI) for release of funds, Siraj said.

Funds would be released to the Banks through the State Govt. The funds would be released based on the interest burden worked out by the bank, so that the party bears only 4 per cent interest. The subsidy would be limited to difference between PLR (Prime Lending Rate) and 4 per cent. The amount would be deposited in the Bank in advance. The banks have to use this for crediting the loan accounts of the beneficiaries. The interest earned on the deposited amount should be used for the scheme.

However, the implementation in terms of the laid down guidelines have not taken place in letter and sprit but in violation to it, Siraj lamented. “The coordination committee at that time was setup at a very later stage. Besides, a cumbersome procedure was adopted by the implementing agency as a result of which a considerable number of Hotels and Guest Houses could not avail the package,” Siraj hold the committee responsible.

The interest amount above 4 per cent as subsidy to be paid by the GoI through Department of Tourism has never been deposited in advance in the banks as envisaged in the scheme, he alleges. “The irony is that for last two years no amount on account of said subsidy above 4 per cent has been deposited in the accounts of the beneficiaries.”

Non-compliance on the part of the Department of Tourism has rendered the package ineffective as a result of which “the hotelier’s accounts in the banks and financial institutions are running in red.” The beneficiaries of the scheme have been rendered as defaulters for no fault of theirs. Besides, due to poor tourism scenario prevailing in the valley, particularly since June 2008 when Shri Amarnath Ji land row erupted in the valley, the hotels and Guest Houses having availed the facility of the said package, have not been able to make regular re-payments towards the banks and financial institutions. The hotels and the guest houses have already made considerable repayments towards their banks and financial institutions in respect of the package, he said.

According to president KHARA the state Department of Tourism has already received Interest subsidy amount from the GoI which they were obliged to deposit in the accounts of the beneficiaries in advance. “But the fact remains that the non-disbursement of the said interest subsidy on the part of Department of Tourism has made beneficiaries to suffer. “We have learnt that only a meager portion of interest subsidy that too not in time has been released to be adjusted in the accounts of the beneficiaries by the Department of Tourism in respect of the Hotels and Guest Houses.”

To mention, the KHARA has already taken up the mater with the J&K finance minister, Abdul Rahim Rather, in the previous meeting over here. “We urge the state government to waver of the loan along with the interest,” he said.

High official in the department of tourism, who wished not to be named, told Kashmir Times that the proposal of one time settlement is in active consideration with the department. “We are collecting information form the banks on the same,” he added.