HYDERABAD: A new tourism policy that will be investor-friendly but with an emphasis on developing even villages and minor towns as tourist attractions was announced by the Andhra Pradesh Government on Friday.

Aimed at generating employment and revenue apart from ensuring economic growth and poverty-alleviation, the policy was approved by the Cabinet at its meeting here on Friday. It will involve local bodies for the first time in designing and implementing the tourism projects. The policy also seeks to develop orchards near highways and encourage tourism near archaeological sites on the countryside. To meet manpower needs of the proposed rural tourist spots, training will be imparted to guides, taxi divers and hospitality staff.

Incentives

Investors will be offered various incentives including 20 per cent subsidy on investment subject to a maximum of Rs. 20 lakh, single-window clearance, land allotment on lease for 33 years and more and total reimbursement of stamp duty paid for registration of land or building. Land use regulations will be relaxed wherever required.

Briefing reporters, Information Minister Mohd Ali Shabbir said the cost of power would be reimbursed to the investor at 75 paise per unit during the first year of the policy. The rate for the next four years would also be regulated. Also, 25 per cent of value added tax paid during the first year of the project would be ploughed back the next year to the investor as grant. The same benefit would be available for five years. This principle would be applied to luxury tax and entertainment tax also. The policy document has identified rural areas as potential areas untapped, apart from heritage, pilgrimage and beach sites.

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