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The stakeholders in the tourism sector have pitched for enhancement in the rates of capital investment subsidy promised in the state Tourism Policy-2013.
As per the policy the capital investment subsidy of 20 per cent is limited to Rs 20 lakh in Zone A, Rs 25 lakhs in Zone B and Rs 30 lakhs in Zone C and for projects above Rs 20 crores, the limit has been kept at Rs 30 lakhs in Zone A, Rs 35 lakhs in Zone B and Rs 40 lakh in Zone C.
Zone A comprises of the municipal corporation area of Bhubaneswar, while Zone B includes rest of the state except KBK (Kalahandi-Bolangir-Koraput), Kandhamal and Gajapati districts. The Zone C comprises KBK, Kandhamal and Gajapati districts.
“The state government must lift the limits to attract investors into the sector and give 30 per cent capital investment subsidy on the total term loan of the projects,” said J K Mohanty, past chairman of Ficci-Odisha tourism panel.
Mohanty was speaking at a seminar on ‘Ushering in New Dawn for Odisha Tourism’ organised by The Federation of Indian Chambers of Commerce and Industry (FICCI) - Odisha council.
The provision of subsidy on the term loan was adopted in the Industrial Policy Resolution of 1980 which had attracted entrepreneurs from around the state and almost 200 hotel projects came up during 1980-85. Sources said, the national tourism policy also allows similar sops on the total loan amount.
In addition, five per cent interest subsidy should be made available on the total term loans availed by a hotel unit approved by the state tourism department from institutions such as Sidbi, banks and other financial institutions instead of limiting the scope to the loans availed from Odisha State Finance Corporation(OSFC), which is sick and on the verge of closure, suggested Mohanty, who is also the Chairman of Hotel and Restaurant Association of Odisha. The tourism department has decided to give five per cent interest subsidy per annum limited to Rs 10 lakh for micro enterprises and Rs 20 lakh for small enterprises and Rs 1 crore for units under thrust sector if it fulfills the conditions of the clause 19.3 of the policy which says interest subsidy shall be available only on term loan availed from OSFC.
The sector specific stakeholders are optimistic that the tourism sector will be given thrust with the installation of the new and stable government in the state. Ashok Chandra Panda is the new minister of state (independent charge) for Tourism and Culture department.
Speaking on the occasion, M P Bezbaruah, Permanent Representative, United Nations World Tourism Organization, said that an action plan should be drawn by the private players in consultation with the state government as the policy has already been finalised. He proposed identification of new circuits jointly with the private players and putting in place a consultative monitoring mechanism. Bezbaruah also asked the state government to initiate steps for flight links with Thailand, Myanmar and Bodh Gaya to tap the Buddhist tourists. Subhrakant Panda, Chairman, Ficci Oidsha, Arabinda Padhee , secretary, tourism department and G Mathivathanan, chairman cum managing director (CMD), Industrial Promotion And Investment Corporation Of Odisha Limited (IPICOL), the state level nodal agency for investment promotion also spoke.
