HYDERABAD: The govt on Tuesday announced a new tourism policy for the next five years (2025-2030) with the aim to make Telangana one of the most preferred destination in the country. To attract investors, the govt intends to offer various incentives depending on size of projects (Rs 10 crore to Rs 500 crore) under public-private partnership, joint venture, equity model etc.
“The govt aims to get Rs 15,000 crore in new investments in the tourism sector in the next five years and also create additional job opportunities for three lakh people. The policy intends to enhance tourism’s contribution to a minimum of 10% of the state GDP and place Telangana in the top five states in tourism in the country,” tourism minister Jupally Krishna Rao said in the assembly on Tuesday.
Projects have been divided into four categories depending on location – Hyderabad region within the Outer Ring Road (category A); semi-urban area between ORR and proposed Regional Ring Road (category B); rural Telangana, all other areas outside RRR (category C); and special tourism areas as notified by the state govt from time to time.
Projects worth Rs 500 crore or more providing employment to over 2,000 people have been categorised as ‘iconic’, while those of more than Rs 100 crore and providing employment to 500 people have been tagged as ‘mega’.
RGIA focal point for infra boost
Large projects involve investments between Rs 50 crore and Rs 100 crore, medium projects will have investments between Rs 10 crore and Rs 50 crore, and micro/small enterprises will have investments up to Rs 10 crore.
Infrastructure would be developed with Rajiv Gandhi International Airport in Shamshabad being the focal point and i conic projects will be preferred within a driving distance of couple hours.
“Dry ports along the proposed RRR connecting it with a greenfield highway to Machilipatnam port will make it a hub for construction materials, promote business tourism and world-class shopping experiences around RRR. There will be specialised malls for wedding and household shopping, construction materials and furniture. Shopping festival with attractive offers will be held all through year,” said tourism minister Jupally Krishna Rao.
Mega retail malls along ORR
The govt to promote mega retail malls (luxury branded malls/factory outlets) along ORR exit points based on land availability on PPP mode under the policy, he said.
For PPP projects, the govt has proposed a capital investment subsidy of 25% of the eligible project cost, exclusive of land cost, with a maximum cap of Rs 25 lakh. Tourism projects in rural and special tourism areas will be eligible. In addition, adventure tourism, caravan parks, caravans for tours, houseboats costing up to Rs 1 crore and wayside amenities along national and state highways will be eligible.
Other incentives include state GST reimbursement to investors up to 50% for five years on a case-to-case basis. However, hotels and resorts around Hyderabad are not eligible for GST reimbursement. Projects will also be given 50% reimbursement of land conversion charges and land registration charges within 12 months after commencement.
“Incentives for special tourism areas and iconic projects, like lower lease rent for land, longer GST reimbursement and viability gap funding for management of basic amenities, will be offered for mega theme parks and film studios. For semi-urban, rural and special tourism areas, subsidies on power and property taxes will be offered,” he said.
