FHRAI urges enhancement of ECLGS loan term

    FHRAI has demanded enhancement of the ECLGS loan term for hospitality sector for maximum period under current provisions. In a letter written to Hon’ble Union Finance Minister, Nirmala Sitharaman, Federation requested, “As you are aware, the ECLGS which has played a crucial role in the survival efforts of millions MSMEs in the country has ended on 31st March 2023. But the inadequacies of the scheme to take care of the specific issues of the hospitality sector, which were highlighted by FHRAI many times earlier to the Ministry of Finance and Ministry of MSME, still persist and continue to trouble its beneficiaries. A copy of the representation submitted on 28th September 2022 to the Ministry of MSME is enclosed for your reference. We would like to reiterate the concern areas of the hospitality sector with regard to the ECLGS Scheme as the following: The repayment period of 6 years is too little for a sector that was the first to get affected from COVID and was also the biggest sufferer from the pandemic; extension of ECLGS without long-term repayment option has only increased the credit burden of the industry.”