Investor Friendly

Telangana StateInvestor Friendly

Telangana StateSri.Sumeet Singh,

Executive Director(Hotels), Telangana State Tourism

Development Corporation.

• The vibrant & new State of India – Telangana State recognizes the importance Private Sector Investments in its economic development .

• Tourism & Hospitality Sectors are recognized as Growth Engines for Employment & Economic Development.

• Recently. Government of Telangana launched its new Industrial Policy, called TS – iPASS, which is welcomed by the industry as “Most Industry Friendly” Industrial Policy of the Country.

• It is a Single Window Clearance System without any Grills and Sub- Windows

TOURISM POLICY, 2010

• The Govt. vide G.O.Ms.No.79, YAT & C (T/A2) Department, dt.23.07.2011 have announced Tourism Policy, 2010 to encourage various entrepreneurs in the area of development of Tourism Industry and announced the following incentives and concessions.– Concessional allotment of land– Capital Investment subsidy– Reimbursement of Stamp duty and transfer fee– Reimbursement of VAT– Luxury Tax– Reimbursement of Entertainment Tax– Municipal Exemptions– Energy Incentives

• The tenure of the policy shall be for 5years i.e. 2010-15.

INCENTIVES & CONCESSIONS

CAPITAL INVESTMENT SUBSIDY

20% of the Capital cost of Investment subject to a maximum of Rs.20.00 Lakhs for the projects located in Zone-A for an investment upto Rs.20.00 crores. For investment from Rs.20.00 crores to Rs.100.00 crores it will be 25% of Capital cost of investment subject to a maximum of Rs.30.00 Lakhs.

The projects located in Zone-B will be 5% more than Zone-A limited to Rs.5.00Lakhs.

For Heritage hotels will be considered and will get an additional Capital Investment Subsidy of 5%.

LUXURY TAX

Luxury Tax will be levied at the rate of 5% on room tariff actually charged. Further, the base tariff per room, for levying Luxury tax, which is presently Rs.600 per day will be raised to Rs.1500 per day. Once the system of GST is introduced, it is likely that Luxury Tax will be subsumed under GST as a Service Tax. In such an eventuality, the same benefit will be passed on to the unit as a reimbursement.

REIMBURSEMENT OF VAT 25% of the VAT paid during a financial year will

be ploughed back to the unit as grant towards the payment of VAT for the next year. This benefit will be available for 5 years only.

MEGA TOURISM PROJECTS

Above Rs.100.00 crore projects the subsidies will be given on case-to-case basis.

ENERGY INCENTIVEReimbursement of 0.75 paise /0.90 paise/1 Rupee (According to zone ) per unit of the energy cost for 5 years.

CONCESSIONAL ALLOTMENT OF LANDLease up to 33 years at 5% of basic value with an incremental provision of 5% every year.

REIMBURSEMENT OF STAMP DUTY & TRANSFER FEE50% Reimbursement for lease (through Government on lease basis) and 25% reimbursement for purchase(private parties)

ENTERTAINMENT TAXPloughing back of 25% of Entertainment tax for Entertainment components in Theme Parks, Entertainment Centers etc. (upto 5 years) (new provision) subject to the condition that the total benefit on this account does not exceed 100% of the project cost.

MUNICIPAL EXEMPTIONExemption from payment of Conversion Charges. Payment of Impact Fees will be levied under Category © (which is about 50% of the impact fees paid by other commercial units).

ELIGIBLE TOURISM PRODUCTSThe following tourism products would be eligible for receiving state support:

1) Hotels & Serviced apartments 2) Resorts 3) Heritage Hotels 4) Wellness Centres (spa/yoga/naturopathy/etc.) 5) Amusement Parks 6) Entertainment centres (aquarium/ Indoor rides/ Snow world/etc.) 7) Permanent exhibition complexes 8) Ropeways 9) Convention Centres 10)Wayside Amenities 11)Water Sports 12)Golf Courses 13)Wildlife safaris 14)Luxury Tourist Trains 15)Sea/ River Cruises 16)Ecotourism Centers 17)Rural Tourism products, and 18)Adventure Tourism products

JURISDICTION OF THE TOURISM POLICY

The support mechanisms to be given to private parties by the Government will be in graded as follows in terms of geography:

• Zone A: Area falling within the limits of Greater Hyderabad Municipal Corporation (GHMC)

• Zone B: Region falling within Hyderabad Metropolitan Development Area (HMDA) (excluding GHMC area).

Zone C: Rest of the State.

IMPLEMENTATION OF TOURISM POLICY

Option of forming a Committee for overall

review of the proposed Tourism Policy, 2015

and make suggestions / recommendations to

take up corrective measures.

TS – iPASS • Approval based on self-certification• Processing all clearances within 30 days• Clearances for mega industries within 15 days• Common application form for all approvals • Lot of Tax concessions for industries• Zero tolerance for corruption• Penalties if departments delay clearances• Nodal Officer like Singapore Economic Dev. Board• Minimum inspection and maximum facilitation• Pollution Clearances – Faster Mode

Similar approach can be expected in new Tourism Policy

New Tourism Policy

• Telangana State Tourism Policy is under Preparation.

• Industry can expect a policy that :-

– Encourages Private Investments

– Promotes Public Private Partnerships

– Develops Tourism Entrepreneurship

– Nurture talents for Global Competitiveness

New Tourism Policy

• Pro-active measures for– Promotion of Hotels & Restaurants– Hospitality Training Centers– MICE Tourism Infrastructure Development– Budget Accommodation across the Towns and

Temple Destinations– Conversion of Eco & Heritage Sites and

Destinations for Tourism Promotion– Tourist Transport Infrastructure

New Tourism Policy

• Facilitations for – Speedy approvals & clearances– Land availability for Tourism Infrastructure– Destination Marketing– National & International Events – Conversion of Eco & Heritage Sites and

Destinations for Tourism Promotion– Concessions for Tourist Transport Infrastructure

New Tourism Policy

• Private Sector will be encouraged to – Develop New Tourism Destinations – Operations of Government Hotels & Restaurants– Development of New Tourist Attractions– Operating Tourism Packages– Conducting Festivals & Fairs– Promoting State Tourism Destinations– Transport Operations including Heli Tourism

New Tourism Policy

Our New State Tourism Policy is under Preparation - We seek your inputs

Thank you