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Tourism sector in Uttarakhand to get industry status
In an effort to boost tourism, the Uttarakhand cabinet on Thursday gave nod to a policy that accords industry status to the sector, besides listing a series of benefits and exemptions for some 28 related commercial activities.
In an effort to boost tourism, the Uttarakhand cabinet on Thursday gave nod to a policy that accords industry status to the sector, besides listing a series of benefits and exemptions for some 28 related commercial activities.
“Under the new policy, the tourism sector has been granted the status of an industry. That means some 28 related commercial activities will be entitled to several benefits and exemptions granted by the government,” minister Madan Kaushik said after the Cabinet meeting chaired by chief minister Trivendra Singh Rawat. “In all, 10 decisions were taken by the Council of Ministers at the meeting,” he said.
Kaushik clarified that after the tourism sector was accorded the industry status, 28 allied commercial activities would be entitled to the benefits and exemptions startups and industries in the Micro, Small and Medium Enterprises (MSME) sector were entitled to.
“Like the MSME sector, entrepreneurs who set up units related to those 28 ventures will be provided exemptions and benefits through the subsidy granted by the central government,” Kaushik said.
Entrepreneurs who set up hotels, motels, floating resorts, heritage hotels and health resorts or initiate activities in sectors such as yoga, ayurveda, rural tourism and ethnic cuisines would benefit. “Similarly, startups or entrepreneurs who propose to set up parking lots, restaurants, entertainment parks along the highways, or run light and sound shows, etc. would be entitled to benefits,” he clarified. “The same goes for craftsmen as well as those engaged in village tourism or ecotourism,” Kaushik said.
Entrepreneurs who set up commercial activities in the hills would be entitled to 10% of the capital subsidy or a maximum financial grant of ₹1.5 crore each. However, those who start tourism-related commercial activities in the plains would get 10% of the capital subsidy or a maximum financial grant of ₹1 crore each. Those who propose to set up bigger ventures pertaining to those 28 commercial activities would be entitled to 7% interest subsidy or one time grant of ₹25 lakh each.
“All small and bigger entrepreneurs would get 30% to 50% reimbursement on the Goods and Services Tax depending on the scale of their commercial ventures,” Kaushik said. Such commercial ventures would be entitled to exemptions at the rate of ₹1 per unit on power tariff, besides 50% exemption on the stamp duty.
“However, they would have to return the amount after their commercial ventures will start operations,” he clarified adding that the state government would, however, bear the registration fee for the land to be purchased by entrepreneurs for their ventures. Similarly, they would be entitled to 30% of financial aid or a maximum financial grant of ₹50 lakh each to set up Effluent Treatment Plants (ETPs).
“Under the new tourism policy, the fee charged from entrepreneurs for the conversion of agricultural land into commercial land has also been reduced from 30% to 10%,” Kaushik said.
Welcoming the government decision, Uttarakhand Hotel Association president Sandeep Sahni said: “It will help in inviting investment in our state besides providing some incentives to the local people who have been toiling for generations.”
Praveen Sharma, an executive member of the Northern India Hotel and Restaurant Association, felt the new tourism policy would help give a boost to the local economy. “The policy provides lot of exemptions for almost all commercial ventures associated with the tourism sector. It will make a huge difference to the local economy because tourism is the main source of livelihood in this state,” he said.
