Transport, tourism sectors in Karnataka seek urgent relief amid West Asia crisis

The Karnataka State Travel Operators’ Association (KSTOA) has urged the Centre to announce immediate financial relief measures for the transport and tourism sectors, citing severe distress caused by the ongoing conflict in West Asia.

In a representation addressed to Prime Minister Narendra Modi on April 7, the association said the disruption of international travel and trade has significantly impacted business activity. Suspension of flight operations and reduced movement between countries have led to a sharp decline in demand, affecting transport operators and tourism stakeholders across Karnataka and the country.

Highlighting the gravity of the situation, KSTOA President K. Radhakrishna Holla stated that the sector is facing severe financial stress, and requires urgent intervention to sustain operations and protect employment. The association has sought relief measures for a minimum period of three months for all transport vehicles.

Among the key demands are a moratorium on bank loan repayment for vehicle owners, deferment of direct and indirect taxes without penalties, and temporary relaxation in Employees’ State Insurance (ESI) and Provident Fund (PF) contributions. The association has also requested interest-free working capital support to help operators manage day-to-day expenses.

Additionally, KSTOA flagged challenges faced by operators who invested in National Alternative Fuel vehicles in line with government policy. Due to fuel supply constraints, these operators are now struggling financially, prompting the association to seek special incentives for such vehicle owners and drivers.

Describing the transport sector as the backbone of tourism and trade, the association further stated that timely government support is crucial to maintain economic stability.