Himachal Hotels Appeal to PM for Support After Monsoon Mayhem
Hotels plead for PM's aid amid ₹10,000cr disaster losses.
The Federation of Himachal Hotels and Restaurant Association (FOHHRA) has penned a fervent four-page letter to Prime Minister Narendra Modi, imploring his urgent intervention to rescue the state's beleaguered tourism sector from the brink of collapse following a devastating monsoon season. With hotels shuttered, livelihoods shattered, and debts mounting, the association demands strict enforcement of RBI and MSME restructuring guidelines, a nine-month moratorium on loan repayments, and a halt to aggressive SARFAESI asset seizures that are pushing operators into ruin.
The plea comes against a grim backdrop of nature's fury: Himachal Pradesh endured 41% excess rainfall from June 20 to September 25, unleashing 47 cloudbursts, 98 flash floods, and 148 major landslides that claimed 262 lives and inflicted ₹4,861 crore in immediate damages. This year's toll echoes the 2023 catastrophe, which wiped out over 550 lives and racked up ₹10,000 crore in losses, crippling an economy where tourism is the lifeblood. "The hospitality sector is facing grave financial distress," FOHHRA president Gajender Thakur told PTI, painting a picture of cascading setbacks from natural disasters, pandemic echoes, and regulatory hurdles that have left small operators gasping.
At the heart of the crisis are sky-high bank interest rates—up to 15%—deemed unaffordable for MSME-registered hoteliers already battered by zero revenues during the rainy deluge. Despite RBI mandates for relief, including refunds of excess penal interest, protections against asset downgrades, and internal committee approvals for loans under ₹10 lakh, banks are bypassing these safeguards. Borrowers, many of whom are families with personal assets on the line, are coerced into distress sales or predatory informal loans just to stave off SARFAESI notices under the 2002 Act, which empowers lenders to seize properties of non-performing assets after a 60-day grace period.
Also Read: PM Modi to Launch Mukhyamantri Mahila Rojgar Yojana in Bihar
FOHHRA's wishlist is comprehensive: interest subvention to ease the burden, extended 20-year loan tenures for long-term recovery, flexible restructuring timelines, and a firm directive to the Ministries of Finance and Tourism, RBI, and state Industries Department to enforce compliance. General Secretary M.K. Seth decried the "violation of the spirit" of these policies, noting how non-adherence is forcing entrepreneurs— from hoteliers and taxi drivers to guides and street vendors—into survival mode. Himachal's tourism ecosystem, employing lakhs in direct and indirect roles, risks a mass exodus if unaddressed, with many units already boarded up.
As the state tallies the human and economic wreckage, this appeal underscores a broader call for systemic safeguards in disaster-prone regions. With winter tourism on the horizon, FOHHRA warns that without swift action, the ripple effects could doom an entire industry, stalling recovery for a state synonymous with snow-capped peaks and serene valleys. Modi's response could be the turning point, transforming pleas into policy to rebuild resilience in India's adventure capital.
Also Read: India-Russia Ties Strengthen as PM Modi Hosts Deputy PM Patrushev in Delhi
