The Hindu Business Line : Sops for private players in AP Tourism Policy

Classification
Tourism destinations have been classified into special tourism areas and notified tourism areas.
While STAs would be taken up through PPPs, NTAs would be assigned to the public sector.

Hyderabad , Oct. 29

With an aim to make Andhra Pradesh a preferred tourism destination in the country, the State Government has unveiled the Tourism Policy-2006 that focuses on public-private partnerships, while involving civic bodies in planning and implementation of tourism projects in rural areas.

Offering very attractive incentives for private players in taking up tourism and hospitality projects, the policy classifies the tourism destinations into two segments - special tourism areas (STAs) and notified tourism areas (NTAs).

Coordinated effort

Perhaps for the first time, the Government recognised the importance of coordinated effort from various departments and private players. "We will jointly take up projects with departments like Roads and Buildings and Irrigation to tap the potential," Dr J. Geeta Reddy, Minister for Tourism, Major Industries and Sugar, said.

Addressing a press conference to announce the policy here on Sunday, she said while STAs would be taken up through PPPs (public-private partnership), NTAs would be assigned to the public sector. The policy contained an elaborate list of destinations and their potential.

Tax sops

The policy envisaged a special fund for incentives. "Land will be given on lease for 33 years. It can be extended further, if need be. Cash subsidies would go up to 20 per cent (or Rs 20 lakh) for new projects," she said.

Cash subsidies were also on offer for upgradation of star hotels. Besides, the policy also promised plough-back of 25 per cent VAT, luxury and entertainment taxes. The tax cuts would go up to 50 per cent if the projects were taken up in backward areas.

She said Anand Spa (Rishkesh) would open its first branch out of the Himalayas in Hyderabad. The Rs 100-crore 15-acre project would come up at Nanakramguda near here.

Brand Ambassadors

Dr Pingle Krishna Reddy (a golf player) and Mr Amit Sanghi (a shooter and Chief Executive of Sanghi Spinners India Limited) were appointed brand ambassadors for Andhra Pradesh tourism.

Presenting the two players at the press conference, Dr Geeta Reddy said they would join Mr Pullela Gopichand (badminton champion) and Ms Sania Mirza (tennis star) in selling the State's tourism potential.

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