Amendment status not verified — confirm the current text below against the official source.
FRAMEWORK FOR INCENTIVES AND OTHER SUPPORT MEASURES FOR TOURISM PROJECTS: To attract private sector investment, it is envisaged to offer both financial & non- financial incentives to different tourism projects. 8.1 . Financial Incentives: 8.1.1. Allotment of land: Land is the most important ingredient in setting up of a tourism unit. The land for tourism units will be allotted at concessional rates as per the provision of IPR, 2015 or as per the guidelines to be fixed by the Government from time to time. 8.1.2. Capital Investment Subsidy: To encourage investment in tourism infrastructure and tourism projects, investment subsidy is envisaged for new Tourism Projects. All eligible tourism projects as per Para. 7.11 with investment not below Rs.20 lakh shall be eligible to get capital investment subsidy. The capital investment subsidy is envisaged as follows: (a) Quantum of Capital Investment subsidy Eligible Capital Investment (excluding the land cost) Admissible Subsidy Maximum Limit Investment upto Rs.50 crore 20% Rs.10.00 Crore Investment above Rs.50 crore 20% Rs.15.00 Crore Tented accommodation (with minimum investment of Rs.0.20 crore) 30% Rs.0.15 Crore Equipment worth Rs.1 crore and above for Adventure & Water Sports 20% Rs.0.50 Crore • As percentage of Eligible Capital Investment (b) Additional Subsidy of 5% will be provided to following projects:- (i) New Tourism Projects around Chilika lake, KBK, Kandhamala and Gajapati District and any new places or districts as may be necessary to be notified by the Government from time to time on the recommendation of Tourism Advisory Committee. Considering the influence zone of Chilika, the exact location / distance from higher water level of the Chilika lake within which tourism projects would be considered for incentives will be decided by the TAC. (ii) New Tourism Projects owned and managed by women entrepreneurs (with minimum equity participation of 51% in the entity), those belonging to SC/ST 24 categories and the differently-abled will be entitled to an additional 5% subsidy over and above the ‘Admissible Subsidy’. (iii) In all the above mentioned cases, the total subsidy available shall be subject to the ceiling prescribed under ‘Maximum Limit’ mentioned in Para. 8.1.2(a). (iv) The eligible units after one year of commencement of commercial operations of the project will be eligible for availing capital investment subsidy. 8.1.3. Interest subsidy: All new eligible tourism units as per Clause 7.9, 7.11 shall be eligible to get interest subsidy as per the following rates for a period not more than 5 years provided the concerned promoter(s) shall not have defaulted to Odisha State Financial Corporation (OSFC )/ Industrial Investment Promotion Corporation of Orissa Limited (IPICOL) / SIDBI / banks / public financial institutions / other Government Agencies in payment of interest & installment in connection with any other commercial venture with which the concerned promoter is directly or indirectly associated. Interest subsidy @ 5% per annum subject to maximum of Rs.1 crore for the entire period of 5 years. This subsidy will be available to eligible tourism units after one year from date of commencement of commercial operations of the tourism unit maximum up to five years. 8.1.4. Stamp Duty exemption: All new Tourism Units shall be eligible to get 100% exemption in Stamp Duty on purchase of land for the project. Such reimbursement shall be made after commercial operation of the project. 8.1.5. Reimbursement of land conversion charges: All tourism new projects shall be eligible to get 100% reimbursement of the land conversion charges. Such reimbursement shall be made after commercial operation of the project. 8.1.6. Reimbursement of VAT: New tourism projects shall be eligible for reimbursement of 100% of VAT paid for a period of 7 years from the date of commercial operation limited to 200% of cost of plant & machinery / 100% of the project cost whichever is low in a tapered manner provided that the VAT reimbursement shall be applicable only to the net tax paid after adjustment of Input Tax credit. This provision will be suitably replaced / modified after Goods & Service Tax is introduced. 25 8.1.7. Reimbursement of Entertainment Tax: New Multiplex Cinema halls of at least three (3) screens with a minimum capital investment of Rs. 3 crore, with modern projection system, sound system, air conditioning etc., will be reimbursed 100% Entertainment Tax for a period of five (5) years. Similar benefits shall be extended to other eligible tourism projects like Public Aquarium, Aqua Park, Amusement Park etc. 8.1.8. Energy: New Tourism Units will be exempted from payment of electricity duty up to a contract demand of 5 MVA for a period of 5 years from the date of availing power supply for production. To encourage energy efficiency, a onetime reimbursement of cost of energy audit of the new unit shall be provided up to a maximum of Rs.1.00 lakh subject to achieving energy efficiency to be certified by credible third party agency. 8.1.9. Reimbursement of Entry Tax: New Tourism Units shall be eligible for 100% reimbursement of entry tax on acquisition of plant & machinery till the date of commercial operation. New tourism units shall also be eligible for 100% reimbursement of entry tax on purchase of raw material for a period of 5 years from the date of commercial operation subject to a maximum ceiling of 100% of cost of plant & machinery. This provision will be suitably replaced / modified after GST is introduced and implemented. 8.1.10. Employment cost subsidy: 75% reimbursement (in case of male worker) & 100% reimbursement (in case of female workers) of expenditure on account of employer contribution towards ESI & EPF scheme for a period of 5 years shall be made in respect of skilled & semi-skilled workers engaged as regular employees who are domicile of the State. 8.1.11. Environmental protection infrastructure subsidy: New tourism units shall be eligible for reimbursement of 20% of the capital cost of setting up effluent treatment plant / sewerage treatment plant subject to a maximum of Rs.20 lakh. Such reimbursement shall be made only after commercial operation of the project. 8.1.12. Training Subsidy: For every person trained & newly recruited in tourism project, the training cost shall be reimbursed @ Rs.2000/- per employee provided such training is imparted within 3 years of the commercial operation. 26 8.1.13. Tourist Transport : The State will facilitate the provision of adequate quality transport services for tourists. As such 75% exemption from registration charges and 50% concession from payment of permit charges shall be allowed for new air-conditioned coaches having minimum seating capacity of 25 seats, registered as contract carriage and operating in notified tourist circuits. The Department of Tourism shall notify the tourist circuits for the purpose from time to time. 8.1.14. Participation in overseas Tourism Events: DoT shall provide incentives to the tourism service provider of State for participating in overseas tourism events. The incentive shall be limited to 50% of the space rent actually paid and travel expenses incurred by the tourism service provider of the State subject to maximum of Rs.75,000/- for each event. Such concession shall be limited to two events in one financial year for any agency. The tourism service provider approved by Govt. of India, Ministry of Tourism fulfilling the eligibility criteria prescribed by Ministry shall be eligible to get additional reimbursement of travel expenses of 4 more additional events. The admissibility of travel expenses shall be as per the guideline of Ministry of Tourism, Government of India and the maximum ceiling shall be Rs.2.5 lakh per annum. 8.1.15. Film shooting subsidy: To encourage shooting of feature films in important tourist locations and thereby highlighting different tourist destinations of the States, incentive will be allowed for shooting of feature film in the State of Odisha. As such 75% of the actual expenditure incurred on accommodation in hotels of Odisha during such shooting shall be reimbursed subject to a ceiling of 10 lakh. This incentive shall only be allowed to film which is approved by Central Board of Film Certification (CBFC). 8.1.16. Kiosk in important tourist centers: Tourism Department will create Kiosk in important tourist centers for sale of souvenir, handicraft items, tea stall & other utility shops and allot them to unemployed youth of the locality including the existing unorganized vendors at concessional rent / fee. Tourism Department will bring out detail allotment procedure & guideline of such Kiosk by way of Notification. 8.1.17. Subsidy is envisaged in the policy as a means of incentives to encourage private investment in tourism sector. While extending incentives, subsidies & concessions, the total financial incentives for any tourism unit shall not exceed the eligible capital investment in the projects (as defined in Para. 7.9 of the Tourism Policy). 27 8.2. Special Tourism Zone: Many regions of the state have huge tourism potential. To have more focused intervention, it is proposed that the state tourism promotion council will identify and notify such regions as Special Tourism Zones. The state government shall develop quality infrastructure like roads, sanitation, power supply and water supply through convergence of resources in the special tourism zone. The state tourism promotion council may allow separate incentives in the identified zone for specific time period. 8.3. Non-financial Incentive: In addition to fiscal incentives, new tourism units will benefit from a number of other support mechanisms of the Government. • Tourism department will provide facilitation in obtaining various permissions and clearances required from statutory bodies like CRZ, Municipal/local bodies, Airports, Pollution Control Board, etc. on best effort basis. • The Department will make use of the provisions of Single Window, Escort Officer, etc. to fast-track the clearance of tourism projects. • The Government will assist in promotion of private tourism projects at the national and international level. For this purpose opportunities to participate in Road shows and Trade Fairs, link from Government websites, partnership for hosting events and activities etc. by designing suitable modalities would be provided. • Facilitating online reservation of hotels / vehicles/ tour packages of the State tourism stakeholders. • Non-financial performance oriented incentives to tour operators, guides, taxi and auto drivers by way of familiarization tour, training etc.