Investor Friendly

Telangana State
Sri.Sumeet Singh,
Executive Director(Hotels),
Telangana State Tourism
Development Corporation.
 The vibrant & new State of India
Telangana State recognizes the
importance Private Sector
Investments in its economic
development .

Tourism & Hospitality Sectors are

recognized as Growth Engines for
Employment & Economic
Development.
 Recently. Government of Telangana
launched its new Industrial Policy,
called TS iPASS, which is welcomed
by the industry as Most Industry
Friendly Industrial Policy of the
Country.

It is a Single Window Clearance System

without any Grills and Sub- Windows
TOURISM POLICY, 2010
 INCENTIVES & CONCESSIONS
The Govt. vide G.O.Ms.No.79, YAT & C (T/A2) Department,
dt.23.07.2011 have announced Tourism Policy, 2010 to
encourage various entrepreneurs in the area of development of
Tourism Industry and announced the following incentives and
concessions.
Concessional allotment of land
Capital Investment subsidy
Reimbursement of Stamp duty and transfer fee
Reimbursement of VAT
Luxury Tax
Reimbursement of Entertainment Tax
Municipal Exemptions
Energy Incentives
The tenure of the policy shall be for 5years i.e. 2010-15.
 CAPITAL INVESTMENT SUBSIDY

20% of the Capital cost of Investment subject

to a maximum of Rs.20.00 Lakhs for the
projects located in Zone-A for an investment
upto Rs.20.00 crores. For investment from
Rs.20.00 crores to Rs.100.00 crores it will be
25% of Capital cost of investment subject to
a maximum of Rs.30.00 Lakhs.
The projects located in Zone-B will be 5%
more than Zone-A limited to Rs.5.00Lakhs.
For Heritage hotels will be considered and
will get an additional Capital Investment
Subsidy of 5%.
 LUXURY TAX
Luxury Tax will be levied at the rate of 5%
on room tariff actually charged. Further,
the base tariff per room, for levying Luxury
tax, which is presently Rs.600 per day will
be raised to Rs.1500 per day. Once the
system of GST is introduced, it is likely that
Luxury Tax will be subsumed under GST as
a Service Tax. In such an eventuality, the
same benefit will be passed on to the unit
as a reimbursement.
REIMBURSEMENT OF VAT
25% of the VAT paid during a financial
year will be ploughed back to the unit as
grant towards the payment of VAT for the
next year. This benefit will be available for
5 years only.
 MEGA TOURISM PROJECTS

Above Rs.100.00 crore projects the subsidies will

be given on case-to-case basis.
ENERGY INCENTIVE
Reimbursement of 0.75 paise /0.90 paise/1
Rupee (According to zone ) per unit of the
energy cost for 5 years.
CONCESSIONAL ALLOTMENT OF LAND
Lease up to 33 years at 5% of basic value with
an incremental provision of 5% every year.
REIMBURSEMENT OF STAMP DUTY &
TRANSFER FEE
50% Reimbursement for lease (through
Government on lease basis) and 25%
reimbursement for purchase(private parties)
 ENTERTAINMENT TAX
Ploughing back of 25% of Entertainment
tax for Entertainment components in
Theme Parks, Entertainment Centers etc.
(upto 5 years) (new provision) subject to
the condition that the total benefit on this
account does not exceed 100% of the
project cost.
MUNICIPAL EXEMPTION
Exemption from payment of Conversion
Charges. Payment of Impact Fees will be
levied under Category (which is about
50% of the impact fees paid by other
commercial units).
 ELIGIBLE TOURISM PRODUCTS
The following tourism products would be eligible for receiving state
support:
1) Hotels & Serviced apartments
2) Resorts
3) Heritage Hotels
4) Wellness Centres (spa/yoga/naturopathy/etc.)
5) Amusement Parks
6) Entertainment centres (aquarium/ Indoor rides/ Snow
world/etc.)
7) Permanent exhibition complexes
8) Ropeways
9) Convention Centres
10)Wayside Amenities
11)Water Sports
12)Golf Courses
13)Wildlife safaris
14)Luxury Tourist Trains
15)Sea/ River Cruises
16)Ecotourism Centers
17)Rural Tourism products, and
18)Adventure Tourism products
 JURISDICTION OF THE TOURISM POLICY

The support mechanisms to be given

to private parties by the Government
will be in graded as follows in terms
of geography:
Zone A: Area falling within the limits
of Greater Hyderabad Municipal
Corporation (GHMC)
Zone B: Region falling within
Hyderabad Metropolitan Development
Area (HMDA) (excluding GHMC area).
Zone C: Rest of the State.
 IMPLEMENTATION OF TOURISM POLICY

Option of forming a Committee for

overall review of the proposed

Tourism Policy, 2015 and make

suggestions / recommendations to

take up corrective measures.

TS iPASS
Approval based on self-certification
Processing all clearances within 30 days
Clearances for mega industries within 15 days
Common application form for all approvals
Lot of Tax concessions for industries
Zero tolerance for corruption
Penalties if departments delay clearances
Nodal Officer like Singapore Economic Dev.
Board
Minimum inspection and maximum facilitation
Pollution Clearances Faster Mode
Similar approach can be expected in new
Tourism Policy
New Tourism Policy
Telangana State Tourism Policy is under
Preparation.

Industry can expect a policy that :-

Encourages Private Investments

Promotes Public Private Partnerships

Develops Tourism Entrepreneurship

Nurture talents for Global Competitiveness

New Tourism Policy
Pro-active measures for
Promotion of Hotels & Restaurants
Hospitality Training Centers
MICE Tourism Infrastructure Development
Budget Accommodation across the Towns
and Temple Destinations
Conversion of Eco & Heritage Sites and
Destinations for Tourism Promotion
Tourist Transport Infrastructure
New Tourism Policy
Facilitations for
Speedy approvals & clearances
Land availability for Tourism Infrastructure
Destination Marketing
National & International Events
Conversion of Eco & Heritage Sites and
Destinations for Tourism Promotion
Concessions for Tourist Transport
Infrastructure
New Tourism Policy
Private Sector will be encouraged to
Develop New Tourism Destinations
Operations of Government Hotels &
Restaurants
Development of New Tourist Attractions
Operating Tourism Packages
Conducting Festivals & Fairs
Promoting State Tourism Destinations
Transport Operations including Heli Tourism
New Tourism Policy

Our New State Tourism Policy is

under Preparation - We seek
your inputs
Thank you