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‘Similar to Covid’: Karnataka travel operators appeal to PM Modi for financial relief amid West Asia crisis
KSTOA has appealed to PM Modi for a three-month relief package, including loan moratoriums and tax deferments, as the West Asia conflict halts international movement.
The association highlighted how the disruption of international travel and trade has dealt a sharp blow to business activity across Karnataka and the country (File photo).
After over a month of conflict in West Asia, the Karnataka State Travel Operators Association (KSTOA) Tuesday appealed to Prime Minister Narendra Modi for immediate financial relief for the transport and tourism sectors. These industries are currently experiencing significant economic stress.
In a formal representation, the association highlighted how the disruption of international travel and trade has dealt a sharp blow to business activity across Karnataka and the country. Suspension of flight operations and reduced cross-border movement have drastically curtailed demand, leaving transport operators and tourism stakeholders in deep financial distress.
KSTOA president K Radhakrishna Holla stressed the urgency of government intervention, warning that without prompt support, businesses risk collapse and widespread job losses. The association has called for relief measures spanning a minimum of three months for all transport vehicles.
Key demands include a moratorium on bank loan repayments for vehicle owners, deferment of direct and indirect taxes without penalties, and temporary relaxation of Employees’ State Insurance (ESI) and Provident Fund (PF) contribution obligations. The association also sought interest-free working capital support to help operators manage routine operational expenses.
KSTOA also raised concerns about operators who invested in National Alternative Fuel vehicles in line with government policy but are now financially crippled due to inadequate fuel supply. The association has urged the government to introduce special incentives for such vehicle owners and drivers.
Speaking to the Indian Express, Holla said, “We are in a worse situation than the hotels. They are at least getting cylinders in the grey market for a higher price. The travel sector is totally impacted.”
He also did not mince his words over Union Minister Prahlad Joshi’s suggestion that autorickshaw drivers switch over to petrol from LPG for the time being.
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Holla said, “The Central government appears inactive, and responses from Union Cabinet Ministers such as Pralhad Joshi are viewed as insufficient by many affected stakeholders. Instead of focusing mainly on election campaigns, priority should have been given to protecting livelihoods, supporting industries, and ensuring economic stability.”
“The situation now feels similar to the hardship experienced during the Covid pandemic. Many self-employed individuals and small entrepreneurs who were already struggling to recover from Covid losses are once again facing serious economic pressure. At such a critical time, the Central Government was expected to introduce people-friendly relief measures.”
“Steps such as tax concessions, deferment of direct and indirect taxes, temporary relaxation in PF and ESI payments, and postponement of penalties could have helped reduce the burden on small businesses,” Holla added.
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