Pondicherry invites private investment in tourism sector

Preparing masterplan for developing temple town of Karaikal

In an effort to make the state an attractive tourist destination, the Pondicherry Tourism Development Corporation Limited (PTDCL) has drawn up an ambitious plan to develop tourism infrastructure in the state.

The corporation has invited the private sector to invest in developing the tourism infrastructure in the state. It is offering a host of incentives to make the state an attractive place for investment.

The government of Pondicherry is offering a 25 per cent capital subsidy up to Rs 1 crore, sufficient land and power to investors for setting up five-star hotels, develop beaches and to develop the temple town of Karaikal in the state.

The tourism corporation has proposed to develop the temple town at Karaikal, 135 km from Pondicherry at an investment of Rs 200 crore. Karaikal, a former French enclave, is known for the Sufi shrine and Shanishwara temple, the only one in the country.

Said PTDCL director P Gautam Reddy, "We have proposed to develop Karaikal into a modern temple town with all amenities for the travellers. We have commissioned the Housing and Urban Development Corporation (Hudco) to prepare a masterplan for the development. Their report is expected within a week and based on that a decision will be taken on the proposal."

He said that the Pondicherry government had estimated the project cost at Rs 200 crore and the project would be completed in phases over the next five years.

The temple town would be developed on a public private participation (PPP) model. While the tourism department would be the nodal agency, all other government departments would be involved in the project along with the private sector, he said.

Reddy, who was in Bangalore to showcase the tourism potential of Pondicherry at the India International Travel Mart (IITM) during last week, told Business Standard, "We want private investors to come in without a second thought and invest. They will be given all the facilities including a 25 per cent capital subsidy."

He said that the tourism corporation had also proposed to set up a five-star hotel jointly with private participation at Ariyankupam on the banks of river Murugapakam at an investment of Rs 10 crore.

The government participation would be in the form of land spread over 10 acres, while the private sector would pump in the money for construction. The government has already received expression of interest from 14 investors, which include Mahindra Group, Le Meridien and Savera Group. The bids will be finalised within a month.

The corporation also plans to develop a golf course and a family entertainment centre with Imax multiplex, and a restaurant at an investment of Rs 20 crore at Manapet in Pondicherry. Expression of interest would be invited shortly for the project, Reddy added.

The government also proposes to upgrade the existing airport at Pondicherry and has signed an agreement with the Airports Authority of India to develop it into a full-fledged airport. It is proposed to extend the runway to 7,000 feet.

Reddy said the government would provide 20 hectares at no cost to AAI and free electricity for five years, while the AAI will take care of the investment. Jagson Airlines has started operating flights from the airport at Pondicherry. The airport would soon be prepared for operating ATR flights, he added.

Last year, Pondicherry witnessed arrival of 5 lakh domestic tourists and over 50,000 foreign travellers.