“The delay in the release of funds under the Security Related Expenditure (SRE) scheme is causing significant financial difficulties and operational challenges for hoteliers in the valley”.
The delay in the release of funds under the Security Related Expenditure (SRE) scheme has emerged as a serious concern for hoteliers in Jammu and Kashmir. Hotels rented out to paramilitary forces, including the CRPF, BSF, and other central security agencies, have not received their payments for months. This delay is creating significant financial stress for hoteliers who have been supporting the deployment of security forces in the Valley. Recently, Lieutenant Governor Manoj Sinha chaired a review meeting and directed the immediate release of funds under the SRE scheme. While this direction was timely and necessary, the minutes of the meeting have not yet been circulated, which has slowed the follow-up process. The Finance Department, responsible for allocating funds to departments operating under the SRE scheme, has not yet released the allocations. Until these funds are made available, departments cannot pay the hoteliers, and the delay continues. One of the most pressing consequences of this delay is its impact on the monthly loan instalments (MEI) that hoteliers must pay to banks. Many hoteliers had borrowed loans to maintain or upgrade their hotels, anticipating timely reimbursement under the SRE scheme. The prolonged delay in payments has put these instalments at risk, and banks may classify some accounts as Non-Performing Assets (NPAs). Such a situation would have serious consequences, not only for individual hoteliers but also for the local economy, as hotels in the Valley provide employment and generate revenue in addition to supporting the operations of security forces. The SRE scheme is designed to ensure that those who provide services to security forces are not financially disadvantaged. Hoteliers in Jammu and Kashmir have been playing a crucial role by providing accommodation under difficult conditions, often at short notice and for extended periods.
“Delay in Security Related Expenditure (SRE) scheme payments is causing hardship for hoteliers and threatening the local economy. The Finance Department needs to act promptly to improve administrative coordination and ensure the scheme’s efficiency, providing timely payments to hoteliers and supporting both security operations and the local business community.”
The delay in payments undermines their goodwill and raises doubts about the efficiency and reliability of government processes. If such delays continue, it may discourage hotel owners from offering their properties for security purposes in the future, which could have long-term implications for both security and local businesses. It is now imperative that the Finance Department act swiftly to release the funds allocated under the SRE scheme. Circulating the minutes of the LG’s review meeting would also help make the process more transparent and ensure accountability. Timely payment will allow hotel owners to meet their loan obligations, avoid NPAs, and continue supporting the security infrastructure of the Union Territory. In addition to financial implications, delays in SRE payments have a psychological and operational impact on hoteliers. Many of them have been managing multiple responsibilities to accommodate security forces and now face uncertainty and stress due to the delay. Recognizing their contribution and ensuring prompt reimbursement is not only a financial necessity but also a moral obligation. In conclusion, the delay in payments under the Security Related Expenditure scheme is creating unnecessary hardship for hoteliers and could destabilize a critical part of the local economy. Prompt action by the Finance Department and better administrative coordination is essential to ensure that the SRE scheme fulfills its intended purpose. The government must ensure that hoteliers are not left under financial stress and that the scheme continues to function efficiently, benefiting both security operations and the local business community.
