Restaurants, hotels in Mumbai now need fewer permissions to start business

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The hospitality industry in Mumbai might need fewer licenses and permissions to start new restaurants and hotels, giving much-needed relief as they struggle to recover from the lockdown.

The Maharashtra government has cut the number of permissions required to only 10 from the existing 70, Mumbai Mirror reported.

In October, restaurants and bars in Mumbai reopened after six months. The establishments can operate at 50 percent capacity and must enforce health and safety measures due to the COVID-19 pandemic.

The ten permissions are related to Brihanmumbai Municipal Corporation (BMC), labour department, excise, sales tax and the Maharashtra Pollution Control Board.

Government officials and industry insiders are of the view that the measure will boost investment in the sector, the report said.

Valsa Nair Singh, Principal Secretary, Department of Tourism, Maharashtra told Mumbai Mirror that the policy aims to simplify the process.

"We want more investment in the hospitality sector. We studied the best practices around the world. Now, somebody who wants to set up a hotel or start a restaurant does not need to visit any government department," Singh said.

Indian Hotel and Restaurant Association (AHAR) president Shivanand Shetty lauded the measure, but wanted the government to act on certain other issues.

"In spite of a Food Safety and Standards Authority of India (FSSAI) licence, a health licence from BMC is being insisted upon. A signboard licence should also not be mandatory as it is only to direct a customer to the restaurant/hotel. It is not for advertising purposes," Shetty said.

The number of licenses and permits required had deterred entrepreneurs from setting up new restaurants.

"It was very difficult for youngsters to enter the hospitality industry. It required a huge amount of paperwork and visits to government departments. It was time consuming and frustrating. This decluttering of the process of starting a restaurant/hotel is a welcome move," said Ronnie D'Souza, owner Uncle's Kitchen in Malad told Mumbai Mirror.