MP govt mulls 'industry' status for tourism sector

With a view to offering more facilities to private investors in tourism sector state government is mulling over according "Industry" status to tourism sector.

"Government is mulling over it (industry status to tourism). If state accords industry status to the sector, the potential investors will have various concessions and facilities available to industrial investors at much cheaper rates. They will have water and power supply at par with that available for industry," Raghwendra Kumar Singh, managing director of Madhya Pradesh Tourism Development Corporation said. Madhya Pradesh Tourism Development Corporation is a nodal agency that facilitates private investment in the tourism sector.

The state government has identified nearly 30 locations that falls under Special Tourism Zone (STZ) declared in Tourism (amended) Policy 2012. The plan is to attract investment in these localities. "The investors will have easy availability of land in these areas STZ," Singh said. Tourism Development Corporation has nearly 500 hectares of land to be offered to private players provided they have feasible business concepts to promote tourism.

At present an investor gets exemptions from registration and stamp duty, full exemption from luxury and entertainment tax for 10 years, discount up to 75 per cent on prevailing license fee for liquor and the condition of minimum guarantee is waived off for 10 years.

The investor also gets an exemption from diversion premium on and diversion tax. Besides, exemption from Motor Vehicle Tax for 5 years for a maximum of three vehicles. "After receiving industry status private investor will be able to get a considerable subsidy like Rs 10 crore or 20 per cent of the total investment, whichever less. Further, those who want to develop convention centers get subsidy on their project but the subsidy is restricted to government land only. Once we have industry status, a private investor will be able to get similar concessions on private land also," he said. Madhya Pradesh Tourism Development Corporation is planning to develop exhibition-cum-convention centre in Bhopal and Indore. It has a land area in Kotra Sultanabad locality in Bhopal and two land areas in Rau in Indore.

The plan is to develop exhibition or trade-cum-convention centre with hotel as well as seating capacity of minimum 1500 capacity.

The MP Tourism Development Corporation is also planning to double its existing accommodation capacity of 800 rooms.