Leh, Oct 7: In the wake of recent violent clashes that disrupted life in Leh, tourism stakeholders across Ladakh have appealed for urgent financial relief to help revive the struggling sector. They said the unrest, coupled with an already weak tourist season, has pushed local businesses into deep financial distress.
In a joint representation to the Chairman of the Union Territory Level Bankers’ Committee (UTLBC), the All Ladakh Hotel and Guest House Association, All Ladakh Tour Operators Association, Leh Cooperative Taxi Ltd, and local tempo and biker unions sought special measures such as interest-free moratoriums and comprehensive loan restructuring.
Leh witnessed major unrest on September 24, following protests demanding statehood and Sixth Schedule status for Ladakh. The violence left four people dead and dozens injured, leading to a curfew and internet suspension. Among those detained was climate activist Sonam Wangchuk, one of the key figures leading the demonstrations.
While restrictions have now eased, the tourism industry Ladakh’s economic backbone remains severely impacted. “The September 24 violence has once again pushed Ladakh’s tourism and trade sectors into deep financial distress. With the season nearly over and most businesses shutting down for winter, entrepreneurs are unable to meet even basic dues,” the letter stated.
The stakeholders acknowledged the Finance Department’s September 19 notification, which recognised Ladakh as a “disturbance-affected area” under the RBI Relief Measures for Natural Calamities. They, however, urged for stronger interventions to prevent defaults and long-term economic damage.
They proposed an interest subvention for at least 12 months, saying that the accumulation of interest during the moratorium period would still increase borrowers’ burden. They also sought mandatory restructuring of all tourism related loans covering hotels, guest houses, taxis, bikes, tour operators, and traders without penalties or negative impact on CIBIL scores.
“Ladakh’s tourism sustains nearly 70% of livelihoods directly or indirectly. Without timely financial relief, many local businesses risk closure this winter,” the letter said, urging the UTLBC and financial institutions to expedite the final relief package to preserve jobs and financial stability in the Union Territory.