Chhattisgarh tax sops for tourism

New state tourism policy soon, land banks planned for the sector

The Chhattisgarh government is planning to waive stamp duty on purchase of land for tourism infrastructure.

State Tourism Minister Brij Mohan Agarwal announced this incentive at a conference on tourism and aviation here today. Various other tax incentives would be included the new tourism policy of the state, he added.

The state tourism board plans to create "land banks" in the next 5-6 months. It had already received proposals worth Rs 40,000 crore, Agarwal said.

"In power sector alone, the state has signed a memorandum of understanding with various power-producing companies, the investment proposal for which run into Rs 50,000 crore," said Agarwal.

About 100 hotels and motels will be built in Chhattisgarh in the next year and the minister promised that the state government would not interfere in their management.

The Central government has granted Rs 30 crore to the state to promote tourism, he added.

The state government is also planning a 10-year sales tax and excise waiver. The state's tourism promotion board had been working out the details and the announcement would be made soon, Agarwal said.

Lalit Suri, MP and chairman and managing director, Bharat Hotels, demanded that the tourism industry should be give infrastructure status so that the industry could get tax incentives.

The conference had been jointly organised by The Associated Chambers of Commerce and Industry of India (Assocham) and the Chhattisgarh Tourism Board (CTB),

Zhang Lan, director-commercial, Air China, announced that India and China would resume no stoppage air linkages between Beijing and Delhi, Bangalore and Mumbai. The proposal to this effect was under consideration between the two government which would be cleared latest by August 2006, she said.

In his welcome address, Assocham President Anil K Agarwal said Chhattisgarh was one of the leading states in the country whose investment potential is not known to many investors and, therefore, promotional activities to lure investments was the need of hour.

LK Malhotra, chairman, Assocahm Tourism Committee, said that tourism could be one of the major activities Chhattisgarh should promote and announce huge incentives so that its potential is realised to the optimal.