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Goa minister seeks relief for tourism businesses, says he’s affected too
Goa’s Minister of Ports and Solid Waste Management Michael Lobo sought relief for Goa’s tourism businesses in paying back their loans and seeking that no account would be declared as a non-performing asset (NPA) during the ongoing second wave of the pandemic, HT has learnt
Goa’s Minister of Ports and Solid Waste Management Michael Lobo sought relief for Goa’s tourism businesses in paying back their loans and seeking that no account would be declared as a non-performing asset (NPA) during the ongoing second wave of the pandemic, HT has learnt.
Lobo, who represents the Calangute constituency, which is arguably the epicentre of Goa’s tourism industry, said that he had written to the Union finance minister and the prime minister on behalf of beach shack and restaurant owners, taxi operators, car and bike rental operators and other tourism businesses, who, he said, were in no position to pay back their instalments until their businesses can resume.
“I also have a business and I am getting calls from banks from which I have taken loans. A manager of a bank told me yesterday that if I do not pay my loan instalment, it will be declared NPA. Once it is declared an NPA then the process of recovery is initiated,” Lobo said.
“If a bank manager can call me and inform me that my account will be declared as an NPA, what about the common man? What about people who live hand-to-mouth and run small businesses? How will they pay instalments? This is an issue which is plaguing people in Goa as well as the rest of India,” said Lobo, who had once exuberantly said he would be buying a plot of land in Kashmir no sooner article 370 of the constitution was rescinded by Parliament back in 2019.
“I am writing to our government, to the Prime Minister and the Finance Minister that the RBI should issue a circular to all nationalised banks that no account should be declared as an NPA during the second wave of the pandemic,” Lobo said.
“Right from February till now, no businesses have been open and instalments have not been paid since then. Most affected are the small businesses,” Lobo said.
Goa Tourism Development Corporation had conducted a state-wide survey through a consultant KPMG to understand the impact of the first wave of Covid-19 and lockdown on the Goa Tourism Industry. As per the survey, the overall loss of earnings in the tourism industry during lockdown has been estimated at Rs.2,062/-crores. Potential loss of earning for the 2020-21 season has been pegged at Rs.7,239/- crores and the potential job cuts were to the tune of 1.22 lakh (58%). The second wave is expected to erase a similar amount of value from the industry.
Goa’s tourism sector is a big source of revenue for the state with the industry directly contributing 16.43% towards the state Gross Domestic Product (GDP) and also provides employment to nearly 35% of the state’s population that is dependent on the sector, according to official estimates.
