UP woos hotel industry
State promises tax breaks, cheaper land for new hotels
Vishal Sharma
New Delhi/ Agra. The Uttar Pradesh government will unveil a new hotel policy, under which hotels being set up in the state will get a 100 per cent rebate on luxury tax for a period of five years.
Apart from the tax holiday, the state has also made an offer to provide prime land for constructing the hotels at a rate applicable for industries. The land will be made available by the UP State Industrial Development Corporation.
The new policy also empowers various development authorities to take over the possession of rural land if required for the development of new hotels.
According to sources in the Agra development authority, development authorities will have to mention the land reserved for hotels in the forthcoming city master plans that will be reserved for five years, after which, if no proposals are received for the construction of a hotel, the land can be used for commercial purposes.
According to sources, land for five-star hotels shall be made available only to those hotel groups that have had a turnover of atleast Rs 100 crore and an experience of over 10 years.
For a four star hotel, a group has to have a turnover of Rs 75 crores and for three star hotels it is Rs 50 crores with five years of experience.
Under the new policy, special preference shall be given to Indian hotel groups that are affiliated to international hotel groups or direct investment being made by international hotel groups.
Apart from hotels, the state is also planning to provide land for the development of new multiplexes and shopping malls, especially in Agra where shopping malls could attract tourists.
According to sources, at present, there were atleast a dozen movie theatres, shopping malls and multiplexes under construction in Agra and under the new policy, land had been set aside by the Agra Development Authority for the construction of ten more multiplexes, street markets and shopping malls on the Agra-Delhi national highway.
Apart from the tax holiday, the state has also made an offer to provide prime land for constructing the hotels at a rate applicable for industries. The land will be made available by the UP State Industrial Development Corporation.
The new policy also empowers various development authorities to take over the possession of rural land if required for the development of new hotels.
According to sources in the Agra development authority, development authorities will have to mention the land reserved for hotels in the forthcoming city master plans that will be reserved for five years, after which, if no proposals are received for the construction of a hotel, the land can be used for commercial purposes.
According to sources, land for five-star hotels shall be made available only to those hotel groups that have had a turnover of atleast Rs 100 crore and an experience of over 10 years.
For a four star hotel, a group has to have a turnover of Rs 75 crores and for three star hotels it is Rs 50 crores with five years of experience.
Under the new policy, special preference shall be given to Indian hotel groups that are affiliated to international hotel groups or direct investment being made by international hotel groups.
Apart from hotels, the state is also planning to provide land for the development of new multiplexes and shopping malls, especially in Agra where shopping malls could attract tourists.
According to sources, at present, there were atleast a dozen movie theatres, shopping malls and multiplexes under construction in Agra and under the new policy, land had been set aside by the Agra Development Authority for the construction of ten more multiplexes, street markets and shopping malls on the Agra-Delhi national highway.
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