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Tourism
MP Tourism gets ‘industry’ status
05-09-2012

BHOPAL: Approving the Madhya Pradesh ‘Tourism policy’ the state cabinet on Tuesday accorded the status of ‘industry’ to tourism. Provision has also been made for subsidy to heritage hotels.

Accordingly, if a private building is converted into and run as a heritage hotel by the building owner or any other investor, then 25 per cent 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.  

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 per cent subsidy or Rs 50 lakh, whichever is less, will be payable.  

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 2,000 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.