Finance Minister Nirmala Sitharaman on Monday announced new measures to give a boost to the tourism sector reeling under the Covid-19 induced pressure.
Sitharaman said once the visa issuance for international travel is restarted, the first five lakh tourists will be issued visas free of charge.
“The scheme would be applicable till March 31, 2022, or till 5 lakh visas are issued, whichever is earlier. This would incentivise short-term tourists visiting India,” she said during the press briefing.
The benefit will be available only once per tourist. The scheme will result in about Rs. 100 crore revenue loss to the government.
The government will also provide working capital or personal loans to people in the tourism sector to discharge liabilities or restart businesses impacted due to Covid-19.
“The focus is on new lending, and not repayment of old loans,” she also said, adding, “all borrowers (including defaulters upto 89 days) are eligible for the scheme.”
The government recognized travel agents and tour guides will be eligible for loans upto Rs 10 lakh and 1 lakh respectively, without any processing charges or collateral requirement.
There are about 11,000 registered tour guides and travel agents who are expected to benefit from the scheme.
The Finance Minister didn’t announced any direct measures to boost the hospitality sector, which is also facing severe crisis post the outbreak of the pandemic.