Subodh Kant Sahai, union minister of tourism, while addressing the 47th Annual Federation of Hotel & Restaurant Associations of India (FHRAI) convention has promised to help the Indian hospitality industry acquire the much required ‘infrastructure’ industry status.
“I have met the the union finance minister, P Chidambaram recently and have raised the issue of granting infrastructure status to the hotel and restaurant industry. I have also been discussing this with the infrastructure committee and promise that the anomalies present in the current status of infrastructure to the industry will be removed,” said Sahai.
FHRAI has been demanding infrastructure status for the industry which is highly capital intensive, with large sunk costs and long gestation periods. The steady increase in borrowing costs, over the past few years, is not only undermining the financial viability of individual projects across the country, but is clouding the investment horizon for the entire sector. The tourism industry, one of the largest employment generators in the country, earns valuable foreign exchange for the economy and is a significant contributor to the national GDP.
Kamlesh Barot, president, FHRAI, said, that the minister's assurance has come as a big relief to the industry. "The list of infrastructure status which has been notified by the Cabinet Committee on Infrastructure has only included ‘Three-star or higher category classified hotels located outside cities with population of more than one million’. This unreasonable restriction seriously limits the intended beneficial impact of this policy initiative by excluding a majority of our industry from within its purview. We hope that the corrective measures by the minister will result into a big boost to the industry,” said Barot.
“I have met the the union finance minister, P Chidambaram recently and have raised the issue of granting infrastructure status to the hotel and restaurant industry. I have also been discussing this with the infrastructure committee and promise that the anomalies present in the current status of infrastructure to the industry will be removed,” said Sahai.
FHRAI has been demanding infrastructure status for the industry which is highly capital intensive, with large sunk costs and long gestation periods. The steady increase in borrowing costs, over the past few years, is not only undermining the financial viability of individual projects across the country, but is clouding the investment horizon for the entire sector. The tourism industry, one of the largest employment generators in the country, earns valuable foreign exchange for the economy and is a significant contributor to the national GDP.
Kamlesh Barot, president, FHRAI, said, that the minister's assurance has come as a big relief to the industry. "The list of infrastructure status which has been notified by the Cabinet Committee on Infrastructure has only included ‘Three-star or higher category classified hotels located outside cities with population of more than one million’. This unreasonable restriction seriously limits the intended beneficial impact of this policy initiative by excluding a majority of our industry from within its purview. We hope that the corrective measures by the minister will result into a big boost to the industry,” said Barot.
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