Grants Provisioned under Uttarakhand Tourism Policy, 2023

Description
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
• 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:
• The grant will be given as per the following details:
• Additional Annual Incentives for Residential Projects:
• 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:
• 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.

Eligibility Criteria
1. Minimum investment and infrastructure development requirements prescribed for tourism projects, products, and services identified under various NIC codes mentioned in the Tourism Policy.
2. 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.
3. 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.
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Required Documents
• Applicants are required to submit the necessary documents in accordance with the guidelines specified under the Tourism Policy, 2023.
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Frequently Asked Questions
Q: Who is eligible to apply for grants?
A: Any legitimate entity or investor, individual, firm, company, or institution, interested in investing in the tourism sector and meeting the eligibility criteria specified in the Tourism Policy 2023 and its Operational Guidelines is eligible to apply.
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Q: What types of tourism projects are eligible for capital subsidies?
A: Eligible projects include tourism housing projects, tourism products, and tourism services identified under various NIC codes mentioned in the policy.
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Q: What are the categories and corresponding capital subsidy percentages for housing projects?
A: The capital subsidy for housing projects is determined by the project’s category:

- Category A – up to 25%
- Category B – up to 35%
- Category C – up to 50%

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Q: How is the capital subsidy for housing projects disbursed?
A: The subsidy is provided in 10 equal annual installments (10% of the total per year) from the date of commercial operation, or alternatively, 75% of the Net State GST (SGST) paid by the unit for the last 12 months plus any additional incentive, whichever is lower.
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Q: What is the capital grant available for tourism products and services?
A: A capital grant up to 100% of the capital asset may be provided for developing tourism products and services, subject to eligibility and approval.
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Q: How is the capital subsidy for tourism products and services disbursed?
A: It is disbursed in five equal annual installments (20% per year) from the date of commercial operation, or 75% of the Net SGST paid during the last 12 months, whichever is lower.
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Q: What is the Turnover Linked Incentive and who can avail it?
A: The Turnover Linked Incentive is provided to tourism projects that are already operational and not availing any capital grant. The incentives include:

- Premium Residential Units – up to 1% of eligible turnover
- Foreign Tourist Stay – up to 1% of eligible turnover
- MICE/events/fairs/festivals – up to 1% of eligible turnover

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Q: Is there any incentive for heli-transport operations?
A: Yes. A subsidy of ₹500 per person per leg is provided to tourism units operating helicopter transport from Sahastradhara, Jolly Grant, and Pantnagar helipads to the nearest residential location.
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Q: Are there provisions for reimbursement of electricity and stamp duty?
A: Yes.

- Electricity Duty: 100% reimbursement to new eligible tourism units for the policy period.
- Stamp Duty: Applicable stamp duty reimbursement in five equal installments.

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Q: How can investors apply for in-principle approval?
A: Investors must apply online for In-Principle Approval through the Single Window System at [https://investuttarakhand.uk.gov.in](https://investuttarakhand.uk.gov.in/), by filling in project, land, and scheme details, and uploading required documents.
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Q: When can investors apply for the grant after project completion?
A: Investors can apply for the grant only after commencing commercial operations, and must submit their online application within 150 days from the end of the relevant financial year.
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