The Finance department has released ₹33.6 crore to pay a part of the long pending subsidy for Kudumbashree Janakeeya hotels across the State.
Speaking at a press conference here on Wednesday, Minister for Department of Local Self-Governments M.B. Rajesh said that with the sanctioning of ₹33.6 crore out of the total pending subsidy of ₹41 crore, much of the issues faced by the Kudumbashree groups running the Janakeeya hotels will be addressed. The subsidy is expected to be credited to the Kudumbashree units soon.
Many of the Kudumbashree units running the hotels have subsidy arrears running into lakhs pending for a period stretching over an year. Some had wound up operations unable to continue due to the pending dues. An action council of those running Kudumbashree Janakeeya hotels in various districts had recently organised a protest in front of the Secretariat demanding the government to clear the subsidies.
The subsidy has been pending since the middle of 2022. The government is supposed to provide a subsidy of ₹10 for each meal costing ₹20. In addition, it also takes care of the water, electricity bills and the rent of the building.
However, the government had in August this year withdrawn the subsidy scheme for Janakeeya hotels, following which those running the hotels were allowed to raise the cost of meals to ₹30.