Fani's rage spells Rs 2500-crore loss for hoteliers in Puri, Bhubaneshwar

Hoteliers have urged the state government to direct banks through Reserve Bank of India (RBI) to impose two years moratorium on receovery of bank loans

A business loss of Rs 2,000 crore is claimed after the severe Fani cyclonic storm hit about 1,000 hotels in Puri, Bhubaneswar and Cuttack.

“Hotels in these cities have also lost assets of about Rs 500  crore and the government must plan relief measures to compensate this,” J K Mohanty, chairman, Hotel and Restaurant Association of Odisha (HRAO), told reporters.

The body has asked the state government to get the Reserve Bank of India (RBI) to have banks allow a two-year moratorium in existing term loans for repayment of principal and interest. Also, new term loans for reconstruction, restoration and the like, with no interest to be paid for two years.

“These fresh sanctions should be without any approval and documentation and must be sanctioned within 30 days from the date of loan application,” Mohanty added.

HRAO also urged insurance companies to disburse half the claim amounts by May 30, as has been done by TATA AIG to some as a special gesture.

HRAO has prepared a short-term and long-term plan to rebuild. It has proposed that the government exempt the employer contribution component for provident fund and employees state insurance for two years for all hoteliers and exemption for the goods and services tax, holding tax, municipal tax and other statutory ones.