Capital subsidy for projects in lesser known tourist spots
R.K. Radhakrishnan
Soft loan to be sanctioned for first five years
Scheme will be in operation from this financial year
Four member committee to scrutinise proposals
CHENNAI: In a major initiative to boost tourism in lesser known tourist spots, the Tourism Department has decided to grant capital subsidy for tourism projects. A soft loan will also be sanctioned for the first five years to pay sales tax in view of the relatively long time that a project takes to break even.
An order issued by the department on September 27 said hotels, amusement parks, golf course, rope car and boat houses are among the projects that will be eligible for grant of the subsidy of 10 per cent of the project cost, subject to a ceiling of Rs.1 crore. As per the order, a single star hotel venture will get a maximum of Rs.25 lakh subsidy (excluding the land value); a two star venture Rs.50 lakh, and three star and above, Rs.1 crore.
The scheme will be in operation from this financial year. It will be operational for five years, after which a decision on extension will be taken.
The one-time subsidy for setting up amusement park, golf course, rope car and boat house will be a maximum of Rs.1 crore, excluding the value of the land.
Besides, a soft loan at the interest rate of 0.1 per cent a year to pay sales tax, which has to be repaid to the Government in the next five years, will also be sanctioned.
A committee, headed by the Director of Tourism and Managing Director, Tamil Nadu Tourism Development Corporation, and three other members will scrutinise the proposals for grant of subsidy. Projects that are already being built but are yet to be completed will also be eligible for the capital subsidy.
The Tourism Director will sanction the subsidy based on the recommendations of the committee.
The Tourism Department has prepared a list of lesser known places that are either pilgrim centres or heritage sites, and which need infrastructure to support enhanced tourist arrivals.
These include Periyapalayam and Pulicat in Tiruvallur district; Elagiri in Vellore; Thirukkadaiyur, Vedaranyam and Tranquebar in Nagapattinam; Thirumanancheri in Thanjavur; Sithannavasal in Pudukkotai; Puliancholai in Perambalur; Tharamangalam in Salem; Kolli Hills and Hogenakkal in Dharmapuri; Bhavani Kooduthurai in Erode; Valparai in Coimbatore; Megamalai in Theni; Sirumalai in Dindigul; Thiruppudaimaruthur in Tirunelveli and Thiruparappu in Kanyakumari.
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