Paryatan Sahayata Prakalpa – Working Capital Support Scheme for Tourism Industry

Department of Tourism
General Establishment Cell
Block-‘A’, 3rd Floor, N. S. Building, 1, K.S. Roy Road, Kolkata – 700001

No. 377-TM/5T-19/2020 Date: 25.02.2021


Working Capital Support Scheme-Relief Scheme for the tourism industry in the wake of COVID-19 pandemic.

West Bengal, with its geographic diversity is uniquely positioned to emerge as a top all season tourist destination in the country. In the last few years, consistent improvements in infrastructure and services pertaining not only to tourism but inter alia road connectivity and law and order have enhanced the tourism potential of West Bengal. Tourism has evolved as one of the important drivers of growth of the state economy. The travel and tourism sector’s total contribution to West Bengal GSDP including spillovers to other sectors is around 11% against a national average of 9.6%. This sector also contributes to significant employment opportunities. West Bengal has seen an exponential growth in domestic and international tourist arrivals in the state. There has been an increase of 73.10% in international and domestic airlines touchdown in the state from 2012-13 to 2018-19. The State Government introduced the “West Bengal Home-stay Tourism Policy 2017” and the “West Bengal Tourism Incentive Scheme 2015” to promote investment in the tourism sector.

However, the COVID-19 pandemic has adversely affected the growing tourism and hospitality sector. The loss of travel and tourism in the peak summer months especially to North Bengal has crippled the stakeholders especially based out of North Bengal and across the state. It is expected that delay in the leisure traveler’s sentiments for non essential travel may take more time to recover. Over 75% of the tourism industry is in small and medium category. Tourism stakeholders with no business and no income for last few months find it difficult to function without working capital assistance. It is felt that provision of loan scheme to support the tourism industry to mobilize working capital can help the industry afloat in wake of the serious losses due to Covid-19 global pandemic. It will help in management of cash flow and rebuilding the infrastructure to enable the small entrepreneurs to resume business as soon as the travel restrictions are lifted.

Accordingly, I am directed by the order of the Governor to say that the Governor is pleased to introduce the scheme “PARYATAN SAHAYATA PRAKALPA” (name is indicative) as a Relief Scheme for the Travel and Tourism sector in West Bengal.

1. Objective: The objective of the scheme is to provide need based working capital assistance to unit,s functioning in travel and tourism sector affected by the Covid 19 outbreak.

2. Validity of the scheme:- 31.03.2022

3. Applicability of the scheme:-

All existing units/entrepreneurs in the following tourism and hospitality sector in West Bengal.

a. Resorts & Hotels having valid star classification or approved non-star category according to guidelines issued by Ministry of Tourism, Government of India/ Department of Tourism, Government of West Bengal/ valid licence from the local administration (Copy of certificate to be enclosed)

b. Transport Operators accredited with India Tourism with registered office in West Bengal (Copy of certificate to be enclosed)

c. Tour operators/ Travel Agents (with registered office in West Bengal) having valid GST Registration (as tour operator/ travel agent) and have filed GST returns for the last two years (Copy of GST returns for the last two years to be enclosed)

d. Tourist Boats/launches/cruise boats/ house boats having valid license from the Port Department (Copy of certificate to be enclosed)

e. Home Stays registered with the Department of Tourism, Government of West Bengal (Copy of certificate to be enclosed)

f. Low budget hotels and establishments such as Motels, Yatriniwas and Yatrika

g. Way side facilities

h. Convention centers

4. Eligibility Criteria:

Establishments as mentioned at Point 3 above fulfilling the following conditions can apply for the scheme.

a. Establishments must be working in travel and tourism sector in West Bengal.

b. New applicant of loan & existing borrowers.

c. Proprietorship firms/ Partnership firms/ Ltd Companies etc.

d. Should be in possession of valid trade license as per extant guidelines.

e. Should be in possession of all statutory approvals for the functioning of the firm / unit.

f. Should be GST registered wherever applicable.

g. Any existing Loan should not be in SMA2 status or NPA as on 29.03.2020 with any MLIs.

Provided only one (01) establishment from the family will be eligible for this scheme.

In case of new applicants in the tourism and hospitality sector, the applications will be examined on eligibility as per project/financials submitted.

5. Working Capital Support Scheme- Relief Scheme for the tourism industry in the wake of COVID-19 pandemic.

“PARYATAN SAHAYATA PRAKALPA” (name is indicative) as a Relief Scheme for the Travel and Tourism sector is being proposed in all districts within West Bengal.

Considering the loans are related to service sector, the concerned working capital loans may be provided as under:

TypesLoa AmountDetails
ShishuUp to Rs. 50,000This stage caters to the needs of entrepreneurs who are yet to start their businesses or whose enterprises are at an early stage. Loan can be availed in the form of Cash Credit / Overdraft
KishorFrom Rs. 50,001- Rs. 5,00,000This stage helps the business persons who have started their business but are in a need of funds to sustain it in the market. This segment is also for those entrepreneurs who need a larger sum of money than what Shishu loan offers for starting their businesses. Loan can bell availed in the form of Cash Credit / Overdraft.
TarunFrom Rs. 5,00,001 – Rs. 10,00,000This is the highest level of the scheme and an entrepreneur is eligible for a loan from Rs. 5 lakh and upto Rs. 10 lakh. These loans are meant for business owners who need to set up a large business or need funds to expand the enterprise. Loan can be availed in the form of Cash Credit / Overdraft

Loan interest subvention scheme:-

a. Since it will be Working Capital Loan and not Tenn Loan there will be no requirement of repayment through fixed installment i.e. EMI payment by the borrowers.

b. The current assets created out of the loan e.g. Stock-in-trade, Debtors, Bills Receivable, etc. will remain Hypothecated to the Banks.

c. A margin of 25% on Stock-in-trade and 40% on Debtors, Bills Receivable, etc. has to be provided by the borrowers.

d. A yearly Statement of accounts to be provided by the borrower certified by the lending Bank that the account is Standard as per IRAC norms and interest accrued in their respective Cash Credit/ Overdraft A/c is paid in time.

e. Upon receipt of the Certificate from Bank, WBTDCL will have to calculate the interest subvention to be allowed to the extent of 50% of the interest to be paid for the first year subject to maximum of 4% of the loan amount and remit the interest subsidy directly to the Bank for onwards credit of the same in the concerned beneficiary borrower’s account.

6. Procedure:

a. The scheme will be implemented by West Bengal Tourism Development Corporation Ltd under the Tourism Department, Government of West Bengal through Nationalised Banks, State Co-operative Banks, regional Banks and NBFCs (Not through microfinancing scheme).

b. Applications will be received through the WBTDCL website.

c. A committee under the MD. WBTDCL with a representative from the Department of Tourism will examine the projects. FA of the WBTDCL will be a member of the committee.

d. Each such recommended application will be forwarded to the bank’s branches in respective districts through the District Magistrate of the concerned district. The respective banks after sanction of the loan adhering to their existing sanction policy will inform the WBTDCL, Beneficiary and also the District Magistrate. Sanction of loan will be the sole discretion of the Bank.

e. Total Loan amount under this scheme is limited to Rs 100 Crore. (Maximum 1000 units x Maximum loan amount of Rs 10.00 lakh each= Rs 100 Crore)

f. The State Government in no case will act as “Guarantor” for the loan.

g. After the sanction and loan disbursal, the bankers will keep a record of repayment of the loans. All such loans where repayments are regular, interest component of these loans will be calculated and forwarded to WBTDCL, once in every six months i.e. as on 1st July and 1st January. WBTDCL will pay the admissible interest of all such regular repaying loans to the respective bank for onward credit to the loan account of the beneficiary.

7. Loan Tracking:

The loan tracking will be undertaken by the concerned Bank disbursing the Loan. The Lead Bank shall maintain a detailed statement of loan repayments on the basis of quarterly information furnished by the concerned Banks. A Nodal Officer will be appointed from the side of WBTDCL and one each from the Banks participating in the Scheme for coordination.

8. Repayment of loans:

The loans are to be repaid to the concerned Bank disbursing the loan as per its terms and conditions. The bank will submit consolidated statement (borrower wise) to the WBTDCL with their declaration with their repayment status of the loan. In case of any loan account turned to NPA, the beneficiary will not be allowed to receive the interest subvention from the government However, on up gradation of the loan account to standard account within the tenure of loan, the borrower will be entitled to receive the interest subvention.

9. Appeals:

Appeals, if any, shall be filed before the Secretary/ Principal Secretary/ Additional Chief Secretary, Tourism Department, Government of West Bengal within a period of 15 days from the date of declining of the application by the concerned bank.

10. Recover % & Penalty:

a. Any assistance under this scheme shall be liable to be refunded by the borrowers concerned with interest @ 14%p.a. from the date of receipt of the same, on account of obtaining the assistance by any misrepresentation, forgery or deception.

b. In case of default of repayment of the loan, the borrower will not be eligible for any interest subvention. The entire interest/penal interest will have to be borne by the borrower concerned.

c. The borrower shall not perform part/full repayment of the loan amount within twelve months of availing the loan, failing which will make the borrower ineligible for interest subvention from the WBTDCL.

11. Department of Tourism., Government of West Bengal reserves the right to modify the guidelines/ terms and conditions from time to time as may be required during execution of the scheme.

12. This notification is issued with the concurrence of the Finance Department vide their unofficial no. Group I/2020-2021/0127 dated 02.01.2021.

By order of the Governor,

Principal Secretary to the
Govt. of West Bengal

No. 377-TM dated 25.02.2021, Source

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