Restaurateurs seek flexibility in license fee payments

HRAWI urges Maharashtra to extend annual license fee payment deadline due to LPG supply disruption, impacting 30-35% of hospitality businesses.

Mumbai: The Hotel and Restaurant Association (Western India) (HRAWI) has urged the state government to grant an extension or allow staggered payment of annual licence fees, due to the ongoing disruption in commercial LPG supply, which has severely impacted the hospitality sector.

Restaurateurs seek flexibility in license fee payments

In a representation to deputy chief minister and state excise minister Sunetra Pawar, the association requested a one-month extension of the payment deadline from March 31 to April 30. As an alternative, it has proposed a staggered payment system, allowing fees to be paid in four quarterly installments, March 31, June 30, September 30 and December 31.

Pradeep Shetty, spokesperson of HRAWI, said the situation on the ground remains critical, with approximately 30% to 35% of hotels and restaurants currently shut, owing to a near complete halt in LPG supply from distributors.

“Establishments that continue to operate are doing so under curtailed hours and restricted menus, optimising fuel usage to sustain operations. However, many of these establishments may also be forced to shut within the next two to three days if supplies are not restored,” said Shetty. He added that at this critical time, the association was requesting the government to provide immediate relief by granting an extension or permitting staggered payment of the annual license fee. “Such support will go a long way in helping the industry navigate this liquidity crunch,” he said

According to the association, LPG shortage has led to business losses estimated at 25% to 30%. The crisis has also resulted in higher operating costs, as businesses attempt to manage limited resources and explore alternative arrangements.

“In case an extension is not feasible, we seek approval for an alternative, a staggered payment mechanism allowing the annual license fee to be paid in four quarterly installments,” explained Chetan Mehta, vice president, HRAWI.

The ongoing crisis is also beginning to impact employment and has triggered a cascading effect on the perishable supply chain and allied sectors that depend on the industry.