Games push: Guesthouses to get interest subsidy from Centre

In a bid to meet the shortfall of accommodation in the Capital ahead of the Commonwealth Games, the Central government has stepped in to roll out an interest subsidy scheme for adding capacity to guesthouses.

Sources said the move, a brainchild of the Union Tourism Ministry, has been approved at the highest level and is likely to be announced this week. The Finance Ministry and the Planning Commission have also come on board as this plan is a last-ditch bid to make accommodation available for visitors during the Games.

According to the proposal, the government will pay the “interest” on loans taken — up to Rs 2 lakh per room — by guesthouse owners. This is expected to act as an incentive for them to add rooms to their existing establishments and also refurbish the existing rooms.

Sources said this will benefit about 700 licenced guesthouses spread across Delhi. The government is hoping to meet the shortage of about 10,000 rooms through these guesthouses.

The overall shortage of accommodation during the Games will be about 40,000, and the government is trying to bridge the gap by giving tax holidays to the starred hotels which will account for about 11,000 rooms. Another 6,000 rooms will be put together by the Commonwealth Games Village and the newly constructed DDA flats at Vasant Kunj in South Delhi.