ROLE OF GOVERNMENT, PRIVATE AND PUBLIC SECTOR IN THE PROMOTION OF

TOURISM IN MADHYA PRADESH

Madhya Pradesh amends tourism policy to attract

investors
INDORE: The Madhya Pradesh government, after granting tourism sector the status
of industry, has amended the tourism policy so as to make it more investor friendly.
As per the new policy, 25% capital subsidy will be provided for renovation of a
heritage property.
The subsidy will be provided only on completion of one year of service, that too in
those cases only where the property has been awarded heritage hotel status by the
HRACC (Hotel & Restaurant Classification Committee). Evaluation of subsidy will
be done by a committee comprising representatives of the department of
archaeology and tourism. Interestingly, technical knowhow to the owners of heritage
properties shall be provided free of cost by the tourism department.
Talking to ToI, Raghavendra Singh, managing director, Madhya Pradesh Tourism
Development Corporation ( MPTDC), said, "Currently, we are busy renovating
heritage hotels irrespective whether they are in the private or public sector. We have
got seven state-owned and 20 privately-owned heritage hotels which are undergoing
renovation. Also, we have decided to provide free technical support for budget
hotels."

The state will also promote construction of budget hotels at places of religious and
tourist importance that are declared by the state government and offer capital
subsidies. The budget hotels on land provided by MPSTDC from their land bank will
be entitled to 10% capital subsidy, subject to a maximum ceiling of Rs 50 lakh.
Moreover, 50% subsidy on the upset price of land shall also be provided. Similarly,
budget hotels on privately owned land will be entitled to 20% capital subsidy subject
to a maximum ceiling of Rs 50 lakh. However, subsidy will be available only when
the budget hotel has a minimum of 50 rooms and the tariff of each room does not
exceed Rs 2000 per day.
In case of new hotels and resorts on selected tourist destinations, where appropriate
tourist facilities are yet to be developed will also be offered capital subsidy, said

Singh. On investment of Rs 3 crore, 25% subsidy subject to a maximum ceiling of Rs

75 lakh and a maximum of Rs 1 crore. On investment of more than Rs 5 crore, 15%
subsidy will be provided, said Singh.
Moreover, the department has decided to identify and notify the areas with huge
tourism potential as 'special tourism zones (STZ)'. The state government will develop
infrastructure in such zones through convergence. Besides, public private
partnership modules will be encouraged for the new tourism projects, added he.

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Tourism planning in India started quite late with the first tourism policy being
announced by the Government of India in November, 1982 after tourism was
recognized as an industry by the Planning Commission of India in June, 1982.

In July, 1986 the Planning Commission of India set up the National Committee on
Tourism in order to formulate plans for this sector. The government's initiatives of
incorporating a planned tourism sector in India went a long way in boosting
Indian tourism.
In May, 1992 the National Action Plan for tourism was announced. The objectives
of this landmark plan for tourism planning in India were:

To improve the economy category domestic tourism

To develop the tourist areas socially and economically

To preserve the environment and the national heritage

To encourage international tourism

To improve in world tourism India's share

To increase opportunities for employment in this sector

India tourism planning increased with the seventh five year plan India (19851989). The various polices advocated by the seventh plan for tourism planning in
India are:

To promote aggressively domestic tourism

It laid stress on creating more beach resorts

To conduct conferences, trekking, conventions, and winter sports so that

various options are available to the foreign tourists

These polices of the seventh five year plan gave a boost to the tourism planning
India. To further encourage tourism planning in India, the eighth five year plan
(1992- 1997) mentioned that the private sector should increase its participation in
the sector. The various polices advocated by the eighth plan for tourism planning
in India are:

To develop the tourists places

To develop winter sports, beach resort, and wildlife tourism

To restore the projects of national heritage

To provide in tourists centers economy class accommodation

Tourism planning in India has increased by leaps and bounds in the last few years
and the government and Department of Tourism needs to make continuous efforts
to ensure that tourism planning in India takes the tourism sector of the country to
greater heights on a sustainable basis.
Last updated on 4/28/2011

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