The Managing Directors/CEO's/Owners/Director/Partners/General Managers             
FHRAI Hotel Members in the 4 Star and above category

CC:      All Members of the Executive Committee       
             All Regional Associations         

SUB: INFORMATION REGARDING WAIVER OF SECONDARY CONDITION

Dear Member,

This is in reference to the long pending issue of the hospitality sector for waiver of secondary condition with regard to average foreign exchange earnings under EPCG Scheme retrospectively from FY 2007-08 onwards. For the last many years, FHRAI has been rigorously following up with the Ministry of Tourism and DGFT for granting this much needed relief for the industry.

On 1st March 2021, a delegation of FHRAI met the Additional DGFT and apprised him about the urgency of closing down this issue at the earliest. The Additional DGFT advised the delegation to get a letter from the Ministry of Tourism ratifying the point mentioned in the FHRAI - HVS survey report - 'hotels under the category of 4 to 5 star deluxe have registered more than 5% mandatory decline in Foreign Exchange Earnings post 2008-09' as authentic. 

We were successful in getting a letter of endorsement from the Ministry of Tourism which was sent by MOT to DGFT on 27th July 2021 stating that the data mentioned in the FHRAI – HVS report is authentic

A follow – up meeting was held by a delegation of FHRAI on 14th September 2021 with the Additional DGFT and it turned out to be very positive for resolution of this long pending issue.   We were advised by the Additional DGFT to compile the data of hotels from different cities to showcase the income of hotels vis-à-vis forex earnings / decline during the period from 2005 onwards. 

Upon receipt this data authenticated by FHRAI, the Additional DGFT has assured to put up an  official note for waiver of the secondary condition as per the relevant rules of EPCG Scheme.

Therefore, providing this detail is very vital for closure of this issue at the earliest and we therefore solicit your active support to make this possible.  

Please find enclosed a format to furnish this data of your hotel (s). You may fill in the relevant information that has been banded in yellow (ONLY !) in the attached format.  

We request you to provide this information at the earliest but not later than Wednesday 22nd September 2021. Please send the duly filled in format to eatosg@fhrai.com.

With best regards, 

Jaison Chacko
Secretary General
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The Federation of Hotel & Restaurant Associations of India
Regd. Off.: B-82, 8th Floor, Himalaya House, 23 K.G. Marg, New Delhi - 110 001
Tel.: 011-40780780, Email: fhrai@fhrai.com, Website: www.fhrai.com