The Hindu Business Line : AP unveils incentive-packed tourism policy

New initiative
The sops include tax holidays, stamp duty refund, lower power tariff for tourism projects that cover entertainment related business and refund of part of VAT collected.
Tourism is now seen as a revenue generator, which can used to generate employment, aid economic growth and reduce poverty

Hyderabad , Sept. 8

The Andhra Pradesh Cabinet on Friday approved an incentive-packed tourism policy that seeks to attract private enterprise in infrastructure development.

The sops include tax holidays, stamp duty refund, lower power tariff for tourism projects that cover entertainment related business and refund of part of value-added tax collected. Tourism projects will enjoy single window clearance.

Money-spinner

The State Information Minister, Mr Mohammad Ali Shabbir, said that the tourism policy with a host of incentives seeks to be in consonance with the Indian Tourism Policy and other State policies and is aimed at positioning tourism as a major revenue generator.

Its principle objective is to harness its direct and multiplier effect for employment generation, economic growth and poverty alleviation, he said.

The State Principal Secretary for Tourism, Mrs Chitra Ramachandran, said that the State accounts for about 9.3 crore domestic tourists, which accounts for about one third of domestic tourism traffic. This is growing at about 6 to 8 per cent per annum. A significant section of tourists are pilgrims. One of the interesting aspects of the policy is it seeks to revive untapped potential in heritage, beach tourism and rural tourism.

Other sops

Addressing a press conference after the State Cabinet approved the policy, Mr Shabbir Ali said the policy will offer tax concessions for about five years from establishment of the project and would have 25 per cent of the VAT collected refunded. It would also enjoy the benefit of discount of 75 paise per unit from the commercial tariff.

The policy also provides for a tourism development and management plan that would cover preparation of comprehensive strategy for all urban and rural tourist spots and Government projects.

The tax concessions include reduced VAT, luxury tax, entertainment tax and 100 per cent stamp duty reimbursement. The land allotted will be for 33 years and enjoy automatic conversion from zoning regulations.

This also includes investment subsidy on capital investment and heritage hotels.

In addition, the policy provides for a facility to upgrade existing hotels to three star and five star standards.

After a review of the power sector and demand supply related issues, the Cabinet decided to ensure that farmers, if necessary, would be supplied more than seven hours of power, to ensure that the standing crops get adequate water.

The State is already seeking its share of about 1500 MW of power from Central generating stations and is now securing an additional 1800 MW from Central stations to meet the increased demand. This means an additional burden of Rs 8 crore per day.

Water Supply

The Major Irrigation Minister, Mr Ponnala Lakshmaiah, said that by November 2006, the Government would ensure that additional 7.5 lakh acres would be brought under irrigation projects as promised.

On September 10, the CM will release water from a project in Vizianagaram that would bring additional 7,800 acres and inaugurate another lift irrigation project that would see investment of about Rs 318 crore.

The State cancelled the allotment of about 198 acres for salt farms and allotted about 64 acres for Layola Academy for establishment of a polytechnic college in Pulivendla in Kadapa. The Eluru district hospital will now be upgraded to a super speciality hospital.

More Stories on : Tourism | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page