Eye on tourism, Government provide subsidy for heritage hotel

Bhopal: In his bid to promote tourism in Madhya Pradsh, state government will give subsidy to the people who built heritage hotel. The decison has been taken in the cabinet chaired by Chief Minister Shivraj Singh Chouhan. Cabinet also approved Tourism, Warehousing & Logistics and Technical Education & Skill Development Policies.

State Tourism Policy

According to the new policy, if a private building is converted into and run as a heritage hotel by the building owner or any other investor, then 25 percent subsidy or Rs. 1.50 crore, whichever is less, will be payable on capital investment expenditure. The subsidy will be given when an investor would have run the heritage hotel for one year after developing it as heritage hotel and would have been classified as a heritage hotel by the Hotel and Restaurants Approval and Classification Committee. Assessment of investment expenditure will be made by a committee comprising officers of the State Archaeology Department and State Tourism Development Corporation.

The policy also provides for subsidy to investors on construction of budget hotels at prominent religious places. If such a hotel is constructed on the departmental land bank, then 20 percent subsidy or Rs. 50 lakh, whichever is less, will be payable. Subsidy on land price will not be given in such cases.

A budget hotel will be eligible for subsidy/exemption only when 50 or more room are built in it and rent is not more than Rs. two thousand per day per room. Eligibility of subsidy/exemptions on construction of dormitory will be given only when minimum 100 beds are available in it and per bed rent is not more than Rs. 200.

Arrangements for giving subsidy on capital expenditure have been made when the Tourism Department invites investors to construct a hotel/resort at a tourist destination where desired lodging facilities are not available.

On priority, big convention centres will be built at Bhopal and Indore and medium-level centres at Jabalpur and Gwalior. To ensure that desired permissions about tourism projects are received soon, clearances will be given by TRIFAC on projects worth Rs. 10 crore or more. The policy provides for ensuring 24-hour power supply at prominent tourism destinations. Bar licence-related provisions have also been made. The policy provides for giving fillip to weekend tourism.

Warehousing & Logistics Policy

The cabinet also approved state’s Warehousing & Logistics Policy-2012. Its objective is to create additional storage capacity of 20 lakh metric tonnes in two years through private sector investments. The present storage capacity is 91 lakh metric tonnes. Storage capacity of 60 lakh metric tonnes is proposed to be developed in the coming years.

The policy provides for reservation of 10 percent land in new proposed industrial areas. Warehouses will be constructed on minimum 50 acre land in ten districts. Land for warehouses will be allotted at the rates fixed for small industries. There will be a single-window system for sanctioning proposals. There will be business guarantee models for hiring already constructed godowns and state-of-the-art storage facilities like silo bags. Storage capacity will be limited upto 20 lakh metric tonnes on first come first serve basis. Subsidy of 15 percent upto a maximum upper limit of Rs. 2.25 crore will be given on capital investment worth Rs. one crore or more on warehousing construction. Loan subsidy of five percent subject to upper maximum limit of Rs. 1.70 crore will be given for seven years. Already constructed units will be recognised as new units if it is expanded with an investment of over Rs. one crore.

Provision of 20 percent VGF has been made on construction of silo storage. Five-year business guarantee will be given. Two percent concession will be given in registration fees on purchase of minimum 50 transportation vehicles and construction of godowns of 10 thousand metric tonne capacity in integrated logistics projects. Subsidy of 50 percent will be given for recognition by WDRA or ISO 9000 subject to a maximum of Rs. one lakh.

As per the policy, 15 lakh out of 20 lakh metric tonne proposed capacity will be built through godowns and five lakh metric tonnes through silo bags. It will involve total investment of Rs. 1231 crore and subsidy worth Rs. 173 crore.