Adhering to the impact of Covid-19 pandemic on travel, tourism and hospitality businesses, the Union Finance Minister Nirmala Sitharam conducted a meeting with representatives from the industry. The meeting was aimed at discussing several banking-related issues.
Besides the Finance Minister, the meeting was attended by many senior officials, including the Union Minister of State for Finance Bhagwat Karad, Finance Secretary T V Somanathan, Secretaries for Financial Services, Economic Affairs and Revenue.
According to a tweet from the Union Finance Ministry, the chiefs of public sector banks (PSBs) and Indian Banking Association (IBA) were also a part of the discussion.
The pandemic has shaken many hospitality sectors, yet the impact on tourism and hospitality industry remains most profound. The industry leaders working in these sectors have appealed the government for financial support.
The Union Budget 2022-23 released by the Finance Minister announced plans to open an additional Rs 50,000 crore window under the Emergency Credit Line Guarantee Scheme (ECLGS) to ensure ample support to the hospitality sector.
With reference to the ongoing challenges, the ECLGS will be extended up to March 2023. As per the Budget speech, the ECLGS guarantee cover will be expanded by Rs 50,000 crore to a total cover of Rs 5 lakh crore. The additional amount will be earmarked exclusively for hospitality and related sectors.
