The Federation of Himachal Hotels and Restaurant Association (FOHHRA) has appealed to Prime Minister Narendra Modi for urgent help to revive the tourism and hospitality sector, which has been hit hard by the recent monsoon disasters.
In a four-page letter to the Prime Minister, the association asked for strict enforcement of RBI and MSME restructuring frameworks, a halt on SARFAESI actions, and financial assistance for long-term recovery. It sought interest subvention, a nine-month moratorium on principal and interest payments, and flexible loan restructuring timelines. The hoteliers also demanded 20-year hotel loans, reversal of excess interest and penal charges, and a restriction on asset downgrades without proper collateral.
Himachal received 41 per cent surplus rainfall between since the onset of monsoon on June 20. The state suffered damages worth Rs 4,861 crore this year, with 47 cloudbursts, 98 flash floods, and 148 major landslides and rain-related incidents claiming 262 lives. In 2023, monsoon losses were about Rs 10,000 crore, and more than 550 lives were lost.
The association urged the Prime Minister to direct the Finance Ministry, RBI, Ministry of Tourism, and the state Industries Department to ensure these relief measures are implemented.
The SARFAESI Act, 2002 allows banks or financial establishments to seize properties of defaulting borrowers classified as a Non-Performing Asset (NPA) and issue 60-day notices to clear dues.
FOHHRA president Gajender Thakur said repeated natural disasters, financial stress, and weak regulation have pushed Himachal’s tourism economy to the brink.
He added that Himachal is a tourism-based economy as thousands of people, including hoteliers, shopkeepers, transporters, travel agents, guides, taxi drivers, photographers, and local vendors, depend on tourism. Many small and medium operators have already shut down; while others are struggling to survive due to heavy loans they have taken for their businesses.
The letter noted that banks are charging interest rates as high as 15 per cent. Despite being registered MSMEs, many borrowers face SARFAESI proceedings, which goes against RBI and MSME restructuring policies. According to FOHHRA general secretary M.K. Seth, several hoteliers are being forced to sell personal assets or take high-interest informal loans just to stay compliant.
He stressed that the frameworks meant to protect them—such as refunding excess interest, preventing asset downgrades due to restructuring, and offering relief through internal committees for loans up to Rs 10 lakh—are not being enforced.
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