The Hindu Business Line : Each tourism project to get Rs 50 cr for development

BOOST FOR TOURISM: The Minister for Tourism, Ms Renuka Chowdhury, and the Secretary, Mr A.S. Misra, at a press conference in the Capital on Friday. — Kamal Narang

New Delhi , Aug. 5

TO give a big push to the tourism sector, the Government is formulating a new scheme that could see a quantum jump in the funds being made available for infrastructure development at tourism sites.

The new scheme being drawn up by the Ministry of Tourism and Planning Commission proposes providing up to Rs 50 crore to every tourist project identified.

The Ministry hopes to fund between 10-15 such projects annually, officials said.

"The new scheme is being considered at the moment and no final decision has been taken. The proposal is to provide up to Rs 50 crore for the development of infrastructure in tourist places. At present only Rs 5 crore can be spent on such infrastructure in a tourist destination and Rs 8 crore for developmental work in a tourist circuit," the Secretary Tourism, Mr A.S. Misra said.

The scheme will be in the form of 100 per cent Central assistance. The states will set up a nodal body for disbursing the funds.

The Ministry has already held one round of discussions with the Archaeological Survey of India to identify the sites that should be covered under the scheme.

The Ministry is also in talks with the state Governments to consider various ways of making land available at cheaper rates so that more budget hotels can come up.

Officials said that one of the methods suggested to the states is that they consider a revenue sharing model with the hoteliers so that the cost of the project is reduced.

"It has been suggested that an arrangement be worked out through which instead of collecting a huge amount up front for the land, the state can go in for a revenue sharing model and collect monies on the imputed value of the land," officials said. However, as yet there has hardly been any response from the states, official added.

Meanwhile, the Government has also approved a scheme for issuing medical visas for patients wanting to visit India for treatment, the Minister for Tourism, Ms Renuka Choudhury said.

"The scheme will allow a patient and attendant to come here for up to a year. Besides, it will help to create a separate data base for us," the Minister said.

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