Tag Archives: FHRAI

Himanshu Talwar, Assistant Secretary General, FHRAI, has been given the additional responsibility as the Additional Director at FHRAI Institute of Hospitality Management (FIHM), Greater Noida. Management of FHRAI has bestowed the new responsibility on Talwar, where he will be working under the guidance of the Secretary General, FHRAI.

FHRAI has asked the government to provide soft loans with low interest rate to hotel and restaurant players to help cover working capital requirements and help them sustain themselves. This, the Federation says, can support the industry until it reaches the pre-pandemic business levels.

FHRAI has welcomed FSSAI’s enforcement rules making registration mandatory for home-cooked food sellers, whether operating from home or from dark kitchens. “FSSAI has responded to our plea and is taking to task any such unregulated and illegal dark kitchens. Quite a few of these are actually funded and run by the Food Service Aggregators (FSAs) to escape responsibilities attached to operating restaurants legally,” says Gurbaxish Singh Kohli, VP, FHRAI.

Tarun Bajaj, Secretary, Department of Economic Affairs, Ministry of Finance, during a webinar organised by FHRAI, shared his view on moratorium extension and debt restructuring. He said, “Extending the moratorium is not a solution as it is only postponing it; it is better to get restructuring done so that you know what is to be paid and in how much time.”

The Principal Economic Advisor, Ministry of Finance, Sanjeev Sanyal, said during a webinar for FHRAI members, “We have, through the one-time loan restructuring option, offered to alleviate the financial burden on businesses. If for any reason this provision is not working, then the government wants to take your feedback and work on an action-plan to make it work. If this means that the banks, for some reason have displayed inhibition in co-operating with the businesses trying to avail of the government’s scheme, then we will take necessary action to rectify it.”

In today’s FHRAI webinar with Sanjeev Sanyal, Principal Economic Adviser, Ministry of Finance, Government of India suggested FHRAI to put forth their general problems along with other Associations like CII and FICCI. The main problem that Association addressed pertains to restructuring of loans and extending the moratorium period. They also said that onetime restructuring which was allowed till March 31 is not taken very seriously. Sanyal said that the restructuring guidelines addressed in KV Kamanth Committee will not be considered in a normal account, banks may not be taking the guidelines seriously but RBI is. Plus, he suggested that it is important to focus on the schemes that are already existing in the framework and push it forward. Association also requested that moratorium should continue until the situation is better and banks could get a solution. They also mentioned that Amitabh Kant is making some progress in deal with Saudi Arabia for a new credit line. To which Sanyal said that funds is not a problem, economy is doing good, there is liquidity in the market, the task is how to leverage it.

The state has issued a directive that allows all hotels and lodges to operate at 100 per cent capacity from September 2, 2020. Separate SOPs will be issued for necessary precautions to be taken while operating these establishments. Gurbaxish Singh Kohli, President, Hotel & Restaurant Association of Western India, says, “We are happy that the government has allowed 100 per cent capacity utilisation for hotels in the state. Meanwhile, since restaurants are not included in the current negative list, it is understood that restaurants are also allowed to re-open like those that have re-opened in the rest of the country. We have sought clarification on this from the government. Also, we had hoped that it would relax the limit of 50 people at social gatherings, especially for weddings. We had requested that this be based on the size of the venue.”

FHRAI has requested Minister of Finance and the RBI for an extension of moratorium for an additional 3 months, adding that 90% of the hospitality sector could be declared as NPAs post August 31. In another move, it has requested Ministry of Home Affairs for relaxing of quarantine norms for domestic travellers as well as permission to open bars and banquet halls, among others.

The Federation of Hotel & Restaurant Associations of India (FHRAI) has made written representations to the Hon. Minister of Finance Nirmala Sitharaman, the Hon. Minister of State for Finance Anurag Singh Thakur and to the Governor of Reserve Bank of India (RBI) Shaktikanta Das, I.A.S. requesting for an extension of moratorium for additional three months. The hotel industry has made no progress in terms of bookings even after several states unlocked and where hotels resumed operations. The industry has registered average occupancy levels at 10 to 20 per cent. With rental and salary bills, statutory payments and other establishment costs, hotels are finding it unviable to carry on running businesses. FHRAI has informed the Ministry that an extension of moratorium at this time could help hotels restructure existing loans since the process of restructuring is time consuming. Gurbaxish Singh Kohli, Vice President of FHRAI and President of Hotel and Restaurant Association of Western India (HRAWI), says, “For more than four months, hotels and restaurants have remained shut and have earned no revenue throughout the lockdown. There is no improvement in forward bookings and wherever hotels and restaurants have opened, the footfalls are negligible. In addition to the monthly outgoings and the statutory levies, we now have to spend more on employing hygiene and safety measures to follow the SOPs and guidelines issued by the Central and State governments. On account of all this, the debt restructuring plan announced by the RBI for the stressed MSMEs is not going to help the sector. Therefore we have urged that the moratorium be extended by a further three months.”

FHRAI has launched the ‘Work For Our Staff’ campaign for its members to support around 4500 hospitality professionals in more than a dozen cities. With direct 100% compensation being provided to staff by business partner Eureka Forbes, FHRAI and regional member establishments will be able to help staff survive this crisis and give them an opportunity to earn and return to work once this enforced and sustained lockdown is over. Nomination will be accepted on a first come, first serve basis.