The Hotel and Restaurant Association (Western India) HRAWI has urged the Government of Maharashtra to provide immediate relief to the hospitality sector by extending the deadline for payment of the annual licence fee or allowing staggered payments, citing severe operational disruptions caused by the ongoing commercial LPG shortage.
The association has submitted a representation to Sunetra Ajit Pawar, Deputy Chief Minister and Minister for State Excise, requesting a one-month extension of the licence fee deadline from March 31 to April 30. Alternatively, HRAWI has proposed a staggered payment mechanism, allowing establishments to pay the annual fee in four quarterly instalments by March 31, June 30, September 30 and December 31.
Industry stakeholders say the situation has reached a critical stage, with supply disruptions severely impacting day-to-day operations.
“The situation on the ground remains critical, with approximately 30 to 35 per cent of hotels and restaurants currently shut, owing to a near complete halt in LPG supply from distributors,” said Pradeep Shetty, spokesperson, HRAWI.
He added that establishments still operating are doing so under constrained conditions, with reduced hours and limited menus to optimise fuel usage. “Many of these establishments may also be forced to shut within the next two to three days if supplies are not restored,” he warned.
The LPG shortage has triggered widespread business disruptions across the hospitality sector, with industry estimates indicating losses of 25 to 30 per cent nationwide. Hotels and restaurants are facing shorter service hours, menu restrictions, event cancellations or postponements, reduced guest capacity and declining occupancy levels.
In addition to revenue losses, the crisis has led to rising operational costs, as businesses explore alternative cooking arrangements and manage limited resources.
Echoing the call for relief, Chetan Mehta, Vice President, HRAWI, reiterated the association’s appeal for flexibility in fee payments. “We request the government to grant a one-month extension of the licence fee deadline. If that is not feasible, we seek approval for a staggered payment mechanism allowing the annual licence fee to be paid in four quarterly instalments,” he said.
The impact of the crisis extends beyond operations, with stakeholders warning of a broader economic ripple effect. Hospitality establishments, particularly those involved in large-scale catering and high-volume food production, are struggling to sustain operations, while the disruption is also affecting employment and allied sectors, including the perishable supply chain.
“With no LPG supply from distributors and operations severely curtailed, cash flows have been significantly disrupted, making it extremely difficult for businesses to meet statutory financial obligations such as the annual licence fee without impacting salaries, vendor payments and essential operations,” Shetty said.
He added that deferring licence fee payments would provide crucial liquidity support to the sector. “At the same time, we request urgent intervention to restore commercial LPG supply, as the sector will continue to remain under strain until normalcy is achieved,” he said.
Industry bodies have stressed that timely government support will be critical in helping the hospitality sector navigate the ongoing crisis and prevent further closures.