Grants Provisioned under Uttarakhand Tourism Policy, 2023

DETAILS The “Grants Provisioned under Uttarakhand Tourism Policy, 2023” was introduced by the Department of Tourism, Government of Uttarakhand. It aims to promote sustainable tourism development in the state by encouraging private and institutional investment in the tourism sector through targeted financial incentives and subsidies. BENEFITS Under Uttarakhand Tourism Policy, 2023, the following grants are allowed to investors:- The following capital subsidy is provided for tourism projects to be set up by making capital investment in the tourism sector in the state. Grants are admissible: Maximum capital grant for housing projects: Category A – up to 25% Category B – up to 35% Category C – up to 50% The grant will be given as per the following details: a) The maximum admissible capital subsidy shall be disbursed in 10 equal annual installments from the date of commencement of commercial operations, i.e., 10% of the total capital subsidy per annum; OR b) The subsidy amount shall be equivalent to 75% of the net State Goods and Services Tax (SGST) paid by the unit during the preceding 12 months, + applicable additional incentives, whichever is lower. Additional Annual Incentives for Residential Projects: i. Incentive for Marketing and Publicity – Up to a maximum of 1% of the capital grant. ii. Incentive for Training and Skilling – Up to a maximum of 0.5% of the capital grant. iii. Interest Subsidy – Up to a maximum of 1% of the capital subsidy. iv. Incentive for Waste Treatment – Up to a maximum of 0.25% of the capital subsidy. v. Incentive for Bookings through Online Travel Agencies/Platforms Developed by the State – Up to a maximum of 0.25% of the capital grant. Capital Grant for Development of Tourism Products and Services – Grant of up to 100% of the capital asset Grant will be provided as per the following details: a) Capital subsidy shall be disbursed in 5 equal annual installments from the date of commercial operation, i.e., 20% of the capital subsidy per annum, or b) The subsidy shall be 75% of the net State Goods and Services Tax (SGST) paid by the unit for the last 12 months, + additional incentive, whichever is lower. Additional Annual Incentives for Development of Tourism Products and Services i. Incentive for Marketing and Publicity – Up to a maximum of 2% of the capital grant. ii. Incentive for Training and Skilling – Up to a maximum of 2% of the capital grant. iii. Interest Subsidy – Up to a maximum of 2% of the capital subsidy. iv. Booking through Online Travel Agency/Platform Developed by the State – Up to a maximum of 1% of the capital grant. Turnover Linked Incentive – A provision of turnover-based grants is available for tourism projects that are already operational and not receiving a capital grant. The following incentives are permissible: a) Premium Residential Units – Up to a maximum of 1% of the eligible turnover. b) Incentive on Foreign Tourist Stay – Up to a maximum of 1% of the eligible turnover. c) MICE, Organization of Art, Social and Cultural Events, Fairs, and Festivals – Up to a maximum of 1% of the eligible turnover. Incentive for Heli-Transport – From Sahastradhara, Jolly Grant, and Pantnagar helipads to the nearest residence or helipad, a subsidy of ₹500 per person per leg shall be provided to the unit for helicopter transport. Reimbursement of Electricity Duty – 100% reimbursement of electricity duty shall be provided to new eligible tourism units for the duration of the policy period. Reimbursement of Stamp Duty – New eligible tourism units shall receive reimbursement of the applicable stamp duty in five equal installments. To qualify for grants under the Tourism Policy 2023, the minimum investment requirement for new or expansion projects ranges from ₹1 crore to ₹5 crore, depending on the category and location of the project. Investors must also ensure the provision of minimum required infrastructure, compliance with prescribed conditions, and adherence to other regulations specified in the guidelines. Detailed information is available in the Operational Guidelines. ELIGIBILITY Minimum investment and infrastructure development requirements prescribed for tourism projects, products, and services identified under various NIC codes mentioned in the Tourism Policy. Any legitimate entity or investor interested in investing in the tourism sector, in accordance with applicable regulations and meeting the eligibility criteria specified in the Tourism Policy 2023 and its Operational Guidelines, shall be eligible to receive the grants provided under the policy. In cases where land is required for project implementation, the investor must either possess land in Uttarakhand or acquire it through purchase or lease within the state for the purpose of executing the project.