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The Hindu
The Hindu
National
M P Praveen

Despite clearance of subsidy dues, Janakeeya hotels still find going tough

Notwithstanding the State government clearing subsidy dues to the tune of ₹3.85 crore, Janakeeya hotels, the budget hotels being run by Kudumbashree Mission members, in the district continue to stare at potentially rocky times thanks to the ever increasing price rise of essential commodities.

The going is likely to be particularly tough with the government doing away with the subsidy component with effect from this August, which means that the hotels will have to be self-sustainable. The hotels used to offer a basic lunch priced at ₹30 for ₹20, with the remaining ₹10 paid by the government as subsidy. Now the hotels charge the full ₹30 while the parcel is charged at ₹35.

“With the surging price rise, the Janakeeya hotels wanted to raise the price to ₹40 and ₹45 respectively. The Kudumbashree was asked to submit a proposal to that effect before the District Planning Committee for approval. However, the proposal was turned down citing how these hotels are being largely relied on by the common public,” said Kudumbashree sources.

The ever increasing prices of essential commodities, including vegetables, and cooking gas have dealt a blow to the hotels, which procure commodities directly from local markets without any subsidy. At present, they are procuring relatively cheaper commodities. However, even that may get hit if the trend of rising prices continues. Kudumbashree members involved with the operation of the hotels have been asking for some kind of intervention in the form of subsidy for cooking gas or procurement of subsidised commodities through Supplyco outlets to overcome the crisis.

“While rice is made available for these hotels at ₹10.90 per kilogram through the civil supplies corporation, not all were procuring it owing to quality issues,” said sources.

The clearance of subsidy dues pending from last November to this June, however, has come as a big relief to the hotels run by three to five Kudumbashree members. Now, the subsidy for hardly two months remain pending as the government had suspended the subsidy from August 15 this year.

From the initial 114, the number of Janakeeya hotels has since dropped to 96. The hotels operating out of buildings owned by local bodies remain exempted from rent, power and water charges while those operating in rented buildings will have to meet that expenses as well. Some of the Janakeeya hotels offer only lunch while there are others that operate till night offering all three meals depending on the patronage enjoyed, which largely depends on their location.

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