Subsidy woes and rising costs push Janakeeya Hotels to the brink

THIRUVANANTHAPURAM: The government’s much-lauded Janakeeya Hotel (People’s Hotel) initiative, launched to provide affordable meals to the common man, is now facing a crisis. The withdrawal of subsidies and the increase in meal price to Rs 35 have thrown the scheme off track.

The initiative was launched at a time when restaurants across the state were charging arbitrary rates. However, the Kudumbashree units running these hotels are now owed lakhs in pending payments by the government. Despite promises to cover rent and electricity bills, these commitments have not been fulfilled.

With the end of subsidies, the concept of a meal for Rs 20 has vanished. The current rate stands at Rs 35 per meal. As a result, more than half of the Janakeeya Hotels have shut down. The number of customers has also declined significantly. These hotels were introduced during the COVID-19 pandemic as part of the 'Hunger-Free Kerala' project announced in the 2019–20 state budget. Meals were provided at Rs 20 for dine-in and Rs 25 for takeaway. The government had promised a subsidy of Rs 10 per meal, but that amount has remained unpaid for years.