The Hindu Business Line : IDBI allots Rs 100 cr for hotel projects

Mr Jayaraman Iyer (left), Executive Director, IDBI, and Mr M.P. Purushottaman, Chairman, South India Hotels and Restaurants Association, at a press conference in Chennai on Sunday. — Bijoy Ghosh

Chennai , March 13

IDBI has set aside Rs 100 crore for upgrading and modernisation of hospitality industry projects, said Mr R. Jayaraman Iyer, Executive Director, IDBI.

He was speaking at an interactive session with members of the South India Hotels and Restaurants Association (SIHRA).

Mr Iyer said that IDBI was willing to fund projects and more entrepreneurs should come forward to set them up. "The disbursement of funds has also been speeded up."

Mr Jayaraman also advised companies not to pretend sickness, as it would go against them. He added that when it came to debt recovery, the courts were mostly pro-banker.

At a recent board meeting it was decided to take rigid steps like concurrent audit to reduce the number of NPAs.

The bank had also been successful in the corporate debt restructuring and 80 per cent of its debt has been restructured.

Mr M.P. Purushottaman, Chairman of SIHRA, said that there was a shortage of hotel rooms and this gap was likely to be filled shortly. The industry in the southern region had occupancy rates of about 70 per cent, he added.

Mr Purushottaman said that the Federation of Hotels and Restaurants Association (FHRAI) is setting up an Institute of Hospitality Management in Greater Noida.

This institute is a green field project and the investment is about Rs 25 crore, which will be spent over two years.

FHRAI has also signed a consulting and certificate agreement with the Ecole Hoteliere de Lausanne, Switzerland.

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