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New tourism policy with an eye on CWG

THE STATE Cabinet on Tuesday approved a new tourism and hotel policy. It was aimed at attracting investment in tourism and hotel industry and building additional hotel bed capacity of 5,000 in the State for the Commonwealth Games (CWG) to be held in New Delhi in 2010.

india Updated: Apr 19, 2006 01:11 IST

THE STATE Cabinet on Tuesday approved a new tourism and hotel policy. It was aimed at attracting investment in tourism and hotel industry and building additional hotel bed capacity of 5,000 in the State for the Commonwealth Games  (CWG) to be held in New Delhi in 2010.

In accordance with a decision regarding development of tourism and hotel industry, a land bank will be created in all districts.

This land will be provided to set up hotels in the next five years on the same pattern as any other industry. The State Cabinet also decided to exempt new hotels from 5 per cent luxury tax that was imposed on hotel rooms with a tariff of Rs 1,000 per day or more.

Chief Minister Mulayam Singh Yadav presided over the State Cabinet meeting that took a decision in this regard. The Cabinet decided to set up a committee to be headed by the divisional commissioners to identify land in different districts. Appropriate changes would thereafter be made in master plans and respective development authorities would allot the land for development of hotels.

The district magistrates, however, would allot the land in various panchayat areas that have no development authority.

The State Cabinet had laid down guidelines for eligibility criteria to categorise new proposals for setting up hotels, said principal secretary, Tourism, Dr Om Prakash. Those having work experience in the hotel industry sector would be given additional points.

There would be extra points for any experience in five-star, four star, three star or international chain of hotels, he said. Additional points would also be given for proposals for five-star category if the applicants had a turnover of Rs 100 crore and experience of 10 years, he said. Under a four-star category, this criteria would be turnover of Rs 75 crore and experience of 10 years, he said, adding the turnover criteria would be Rs 50 crore with experience of five years under the three-star category. If more than one applicant got the same number of points, a draw would be conducted to decide the issue, he said.

Additional capacity would be developed in Noida, Greater Noida and Ghaziabad to provide additional infrastructure for the Commonwealth Games, along with development of tourism and hotel industry in other parts of the State, he said.

The Cabinet also approved a new policy for acquisition and development of land to implement housing schemes of the private sector. It approved a new limit of minimum availability of land for issuing a license and clearing of the Detailed Project Report. Now licenses will be issued to develop a minimum of 25 acre to 500 acres of land. The developer should, however, have a minimum of 25 per cent of the land for getting the license issued. The DPRs will now be approved even if the developer has acquired 60 percent of the total project land. The developer will be allowed compensatory floor area if 20 percent of the land acquired by him is in the green belt.