Our Bureau

New Delhi, Aug. 31

In a move to improve tourism infrastructure, the Cabinet Committee on Economic Affairs (CCEA) approved removing the ceilings on project cost for tourism infrastructure development of the identified destinations and circuits.

The Centre's contribution will now be capped at Rs 25 crore for destination development and Rs 50 crore for circuit development, instead of Rs 5 crore and Rs 8 crore, respectively, for selectively identified circuits and destinations based on tourist traffic.

The approved revision will lead to the development of world class tourism infrastructure in at least 15 identified major tourist destinations or circuits in the country. Additionally, one major circuit and two major destinations per State will be also be taken up as priority in consultation with the State/Union Territory governments concerned.

The CCEA also gave a go-ahead to the merger of two existing schemes for assisting tourism infrastructure development into one scheme Product/Infrastructure Development for Destinations and circuits. Announcing this after the CCEA meeting, the Parliamentary Affairs Minister, Mr P.R. Dasmunsi, said that the existing schemes Integrated Development of Tourist Circuits and Product/Infrastructure and Destination Development would be merged into the proposed scheme.

(This article was published in the Business Line print edition dated September 1, 2006)
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