UP govt aims to attract ₹20K cr investment in tourism sector

At a meeting presided over by chief minister Yogi Adityanath on Wednesday, the state cabinet approved the new tourism policy for investors willing to develop major tourist places, including the lesser known but beautiful natural destinations. The policy gives a lot of relief to the investors through rebates and incentives for the development of tourist destinations.

Lucknow: The Uttar Pradesh government aims to attract investment worth ₹20,000 crore in the tourism sector to develop the state into a ‘tourism state’ and create employment opportunities for 10 lakh youths in the next five years.

The government’s aim is to develop the state into a ‘tourism state’ and create employment opportunities for 10 lakh youths in the next five years. (Pic for representation)

At a meeting presided over by chief minister Yogi Adityanath on Wednesday, the state cabinet approved the new tourism policy for investors willing to develop major tourist places, including the lesser known but beautiful natural destinations. The policy gives a lot of relief to the investors through rebates and incentives for the development of tourist destinations.

Under the new policy, various types of grants have been announced for the entrepreneurs investing in the state.

According to a press release, those investing between ₹10 lakh and ₹10 crore will get a rebate of 25 percent or up to ₹2 crore. Similarly, entrepreneurs investing between ₹10 crore and ₹50 crore will be provided 20 percent subsidy or up to ₹7.5 crore. The entrepreneurs with investment between ₹50 crore and ₹200 crore will get subsidy of 15 percent or up to ₹20 crore whereas those investing between ₹200 crore and ₹500 crore will be given a rebate of 10 percent or up to ₹25 crore. Besides, subsidy will be provided at 10 percent or ₹40 crore, whichever is higher, to premier investors investing capital above ₹500 crore.

An additional 5 percent subsidy will be provided to women and SC and ST entrepreneurs for tourism unit proposals. The tourism units, eligible under the scheme, will be provided interest subsidy of 5 percent of loan amount or a maximum of ₹25 lakh per year for a maximum period of 5 years, on bank loan amount of up to ₹5 crore for setting up tourism units. Registered tourism units will be eligible for either interest subsidy or capital subsidy grant. One hundred percent exemption in stamp duty and registration fee will be given on first purchase, lease or transfer of land for establishment or expansion of tourism units. A provision has been made for complete exemption in change of land use and development charges for all new and expanding tourism units. Many incentives have been given in the policy regarding heritage units as well.