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Andhra Pradesh govt formulates new Tourism Policy to attract investments
September 14, 2010

Andhra Pradesh govt formulates new Tourism Policy to attract investments


14 September 2010

Mumbai: The Andhra Pradesh government has come up with a new Tourism Policy with incentives to attract investments into several tourism spots and metros like Hyderabad and Vishakhapatnam. According to a report in Deccan Chronicle, Dr J Geeta Reddy, Tourism and Information Minister, Andhra Pradesh said that K Rosaiah, Chief Minister, Andhra Pradesh will announce the Policy on September 27, 2010 (World Tourism Day). Earlier, the Chief Minister gave his approval to the policy.

As per the new Policy, the state government will offer land on lease for 33 years with a nominal fee of five per cent on the basic land value with a five per cent increase every year. The state tourism department will develop a land bank for these projects.

The state government has also decided to extend 20 per cent subsidy on projects with investments of Rs 20 crore with an upper limit of Rs 20 lakh and 25 per cent subsidy or a maximum of Rs 30 lakh for investments between Rs 20 crore and Rs 100 crore. The state government will decide on the subsidy for projects above Rs 100 crore on a case to case basis.

The 25 per cent reimbursement on VAT would be given to projects for the first five years. Stamp duty would also be exempted for up to 50 per cent for leased land and 25 per cent for outright purchases of land.

The government had decided to give additional capital incentive of five per cent up to a maximum of Rs five lakh for projects coming up on beaches, water bodies, jalayagnam sites and for Rural, Eco, Adventure and Heritage Tourism projects.