Unlock 15% Capital Subsidy on Wayside Amenities in Gujarat
“Boost Your Tourism Venture: Unlock 15% Capital Subsidy on Wayside Amenities in Gujarat!”
Are you considering stepping into the world of tourism in Gujarat, India? Whether you’re planning to set up a new tourism project or expand your existing one, there’s great news awaiting you! Gujarat’s tourism policy brings forth an enticing offer: a 15% capital subsidy on wayside amenities and other incentives.
Understanding Eligibility:
First things first, let’s understand what constitutes an eligible tourism project. According to the policy, a tourism project/unit is defined as an establishment offering facilities and services related to travel and tourism. This could be anything from accommodations to recreational activities.
There are two main categories of eligible projects: new tourism projects and expansions of existing ones. To be considered a new tourism project, your venture must commence commercial operations during the policy period i.e. 1st January 2021 to 31st December 2025. Conversely, an expansion project involves enhancing the capacity of an existing tourism project by more than 50%.
What is a “Wayside Amenities”?
Wayside amenities, the focal point of this subsidy, are crucial for enhancing the tourism experience. These are facilities strategically located along national/state highways or main district roads and other district roads offering travelers a range of services such as resting areas, toilets, cafeterias, shops, first-aid facility, parking, souvenir booths, etc.
Guidelines for Setting Up Wayside Amenities:
To avail of the capital subsidy, your wayside amenities project must adhere to certain guidelines set forth by the Gujarat Tourism Department. These guidelines include:
Wayside amenities should be located on national highways, state highways or main district road or other district roads or within existing road distance of 1.5 km, 1km or ½ km respectively from such highways/ MDR/ODR.
- Land parcel shall not be in the vicinity of existing toll plaza. The minimum distance from the toll plaza shall be at least 5 km.
- Minimum total land area shall be more than 1 hectare (10000 square meter) for wayside amenities located on National Highways and a minimum area of 500 sqm for car parking and 1000 sqm for buses shall be ensured.
- Minimum total land area shall be more than 0.75 hectare (7500 sqm.) for wayside amenities located on state highways and minimum parking area for 750 sqm and 375 sqm. For car parking shall be earmarked.
- Main District Road (MDR) and Other District Road (ODR) minimum total land area shall be 5000 sqm and a minimum area of 250sqm. For car parking and 500 sqm. For buses shall be ensured.
- The maximum covered area of the site including any mandatory and other facilities shall be 40% or as mandated by the local bye-laws, whichever is lower.
- As per the guidelines of Ministry of tourism, a Hotel Unit should have minimum 10 lettable rooms. Hence, any Wayside Amenities having 10 let table rooms or more shall be considered as a Hotel unit and conditions as per the Gujarat Tourism Policy would be applicable for concessions.
- The facilities to be developed as wayside amenities should attempt to match the MoT norms of at least one star hotel.
Operative Period and Extended Timeframes:
It’s essential to note the operative period of the policy, which spans from January 1, 2021, to December 31, 2025. Projects commencing operations within this timeframe are eligible for benefits. Additionally, there are extended timeframes for project completion based on the capital investment range.
Extended time period for project completion under the 2021-25 policy
| Sr. No. | Project outlay | Extended time period for project completion |
| 1. | Capital Investment up to INR 100 Cr. | Must Commence full commercial operation on or before last date of policy period. |
| 2. | Capital Investment between INR 101 Cr. To INR 250 Cr. | Must Commence commercial operation partially during the policy period and complete project within 06 months from the last date of policy period. |
| 3. | Capital Investment between INR 251 Cr. To 500 Cr. | Must Commence commercial operation partially during the policy period and complete project within 12 months from the last date of policy period. |
| 4. | Capital Investment of INR 501 Cr. And above | Must Commence commercial operation partially during the policy period and complete project within 18 months from the last date of policy period. |
Financial Benefits and Incentives:
Now, let’s delve into the exciting part – the financial benefits and incentives offered under the scheme:
- Capital Subsidy: Eligible tourism units, specifically wayside amenities, can enjoy a substantial 15% subsidy on their capital investment.
- Exemptions and Reimbursements: Besides the subsidy, projects can benefit from a 100% exemption from electricity duty for five years and reimbursement of stamp duty and registration fees.
- Green Building and Sustainable Tourism Certification Subsidy: For those inclined towards sustainable practices, there’s an opportunity to obtain subsidies for obtaining certifications from recognized authorities like IGBC, GRIHA, LEED, and GSTC.
How to Avail the Benefits:
To avail of these benefits, ensure your project meets the minimum capital investment requirements and complies with the guidelines. Registration on the Gujarat Tourism website is mandatory for eligibility.
In conclusion, Gujarat’s tourism policy presents a lucrative opportunity for entrepreneurs in the tourism sector. By tapping into the capital subsidy and other incentives, you can not only enhance your venture’s profitability but also contribute to the growth of tourism in the vibrant state of Gujarat. So, why wait? Seize the opportunity and embark on your journey to success in the tourism industry!
