Karnataka eateries, hotels demand industry status, easier licensing process with state budget on the horizon

economictimes.indiatimes.com:

Congress regime’s second budget slated for Friday, hotels and restaurants are pressing the government for the industry status and easing out licensing challenges. An industry status like restaurants in Gujarat and neighbouring Maharashtra enjoy, would give them benefits in property tax and electricity tariffs.
Only selected five-star hotels in Karnataka have received the status till date, South India Hotel Association president Shyama Raju told ET. “Hotels in Maharashtra got this status a few years ago…we hope that if the Karnataka government comes through, the rest of the south Indian states would follow suit,” Raju, who is the MD of Bengaluru’s Hotel Maurya said.

The Congress had promised in its manifesto before the assembly polls to provide industry status to hospitality establishments with more than 20 employees, and not even all of those are covered yet, Bruhat Bengaluru Hotel Association president PC Rao told ET. “Hotels in other states have this status and they can operate more efficiently, cost-wise. Right now, our application is on hold with the industries department,” he said.

Regardless of status, all restaurants and hotels have to jump the same red tape regarding pollution control issues, and shop and trade licences, he said. “It’s not fair to have different status but the same rules,” he said.

Licensing woes prevail:

While an industry status may alleviate establishments’ costs to a certain extent, restaurants and hotels face a bigger roadblock every year in the lengthy red-tapism involved in