8,000 PGs in Bengaluru shut shop amid pandemic

About 8,000 paying guest (PG) accommodations in Bengaluru have shut down amid the pandemic and related lockdowns, with students and workers in the IT sector — who form a majority of the occupants — leaving the city.

The Bengaluru PG Owners’ Association said that of the 12,000 PGs in the city, only 4,000 are operational now. “Nearly 8,000 have shut while many others are staring at a similar fate. The industry, which was showing signs of recovery in January, has again been hit by the second wave,” said Ashokaraj Panambur, president of the association.

With the closure of PGs, a minimum of 30,000 workers have also lost employment.

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Owing to online classes and work-from-home options, most of the surviving PGs are struggling with low occupancy rates. For the owners, the operation costs remain the same.

"Even if we are to keep the PG in a standby mode, we have to continue to pay our staff, and pay electricity and water charges. With no income, it is difficult to keep the facility on for over a year,” said Mamatha P, who closed down her PG in April.

Many PG owners have tried to raise funds through loans, but banks are wary of sanctioning money to them. “According to government norms, we have to apply for a trade licence and pay our electricity and water bills at a commercial rate. But when we approach banks for loans, they refuse, stating that running a PG is not a recognised business,” said Sukhi Seo, who has been running a PG in Banashankari for 17 years now.

Panambur said the association's main demand was the recognition of PGs by the government and some form of aid to the employees. "We have given representations to various departments but in vain," he said.

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Since many of the occupants left the PGs suddenly, the rooms have not been completely vacated, rendering it impossible to use them for other purposes.

"The occupants have locked the room as they have left behind their belongings. I have got proposals to convert the facility into home quarantine centres but with this limitation, I am not able to explore that option too," said Manish R B, who runs PGs at V V Puram and Shankarapuram.

According to Panambur, most of the PGs in Marathahalli, Electronic City, Whitefield, and other areas, where there is a dense population of IT companies, have shut up shop since the firms have provided long-term work-from-home options for employees.

“The few PGs which are holding on are those in residential areas which get a good mix of students and professionals from diverse backgrounds,” he said. However, with the fear of a third wave setting in, the owners are now unsure if the industry will recover anytime soon.