Uttarakhand Tourism Entrepreneur Promotion Scheme

Description
The scheme "Uttarakhand Tourism Entrepreneur Promotion Scheme" was introduced by the Tourism Department, Uttarakhand Government, aims to encourage and financially strengthen permanent residents/entrepreneurs of the state who invest ₹1 crore to ₹5 crore in the tourism sector. Through this scheme, financial incentives such as stamp duty reimbursement, capital grants, and interest subsidy reimbursement are provided to the permanent residents and entrepreneurs of the state investing in identified tourism activities. Objectives: - To encourage the establishment and development of small tourism units for local residents/investors and to promote their growth and contribution to the tourism economy of the State. - To create employment opportunities in the tourism sector through local investors by providing financial incentives and support and to encourage local investment in the tourism sector by promoting inclusive growth and economic development in the region as well as encouraging favourable business competition and entrepreneurship. - To prioritize the development of high-quality and world-class basic facilities in selected tourism activities/operations with an investment ranging from ₹1 crore to ₹5 crore. - To provide a favourable environment to the investors of the State by providing maximum benefit of financial incentives in the tourism sector to small and medium tourism businessmen and motivating them for new investments. - To ensure benefits from development, employment generation and infrastructure enhancement reach all regions of Uttarakhand through inclusive tourism development by focusing on centralization of resources and support. - The plan is aligned with the objectives of the Uttarakhand Tourism Policy 2023, which seeks to promote and support tourism-related initiatives that contribute to the overall economic development and well-being of the state. Classification of areas for admissibility of financial incentives: Category A: - Entire area of Haridwar, Nainital, and Udham Singh Nagar districts - Areas of Dehradun district that are not included in Category B - Ranikhet and Almora tehsils of Almora district Category B: - Remaining areas of Almora district those not included in Category A - Kalsi, Chakrata and Tyuni tehsils of Dehradun district - Garud tehsil of Bageshwar district - Kotdwar, Lansdowne, Yamkeshwar and Dhumakot tehsils of Pauri Garhwal district - Dhanolti and Narendra Nagar tehsils of Tehri Garhwal district Category C: - The entire area of Uttarkashi, Chamoli, Champawat, Rudraprayag and Pithoragarh districts - Remaining area of Bageshwar, Pauri Garhwal and Tehri Garhwal districts which is not included in category & 39;B& 39; Activities / functions identified for admissibility of financial incentives: - Works related solely to the maintenance of cultural and historical heritage / legacy - Parking spaces only at tourist spots - Ropeways, Funiculars, etc. - Expansion of existing hotel/resort - Floating platforms/floating resorts - Heritage Hotels / Units - Hotel, Motel - Spa & Wellness Resort - Tourist Resort / Tourist Village - Establishment of cruise boats, yachts, houseboats and boat clubs - Eco Lodge and Residential Tents - Non-fuel on-route facilities on national and state highways, including restaurants and parking - MICE Meetings, Incentives, Conferences, Exhibitions or convention centres - Tourism or Hospitality Training Centre - Yoga, Ayurveda and Naturopathy Resort - Museums / Commercial Art Galleries - Amusement Park

Benefits
• > **Stamp Duty Reimbursement:**
• **1. Amount:** 100% of the applicable stamp duty.
• **2. Intended Use:** For new eligible tourism units to receive reimbursement on the stamp duty paid on:
• Sale/lease deeds related to the purchase/lease of land/built-up area for tourism projects, provided the sale/lease deed is executed during the scheme's validity period.
• Loan agreements are made for initiating the project during the scheme's validity period.
• Mortgages and pledges were made for initiating the project during the scheme's validity period.
• **3. Conditions:** The stamp duty reimbursement will be provided in a lump sum after the tourism unit commences commercial operation (COD). The application for stamp duty reimbursement must be submitted along with the capital grant application.
• > **Capital Grant/Assistance:**
• **1. Amount:** Financial grant/assistance will be provided based on the permissible capital investment for establishing new or expanding existing eligible tourism units in the identified categories.
• **Category A districts:** ₹33,00,000 plus 15% of the additional permissible capital investment above ₹1,00,00,000, with a maximum grant of ₹80,00,000. - **Category B districts:** ₹33,00,000 plus 25% of the additional permissible capital investment above ₹1,00,00,000, with a maximum grant of ₹1,20,00,000. - **Category C districts:** ₹33,00,000 plus 30% of the additional permissible capital investment above ₹1,00,00,000, with a maximum grant of ₹1,50,00,000.
• **2. Eligible Capital Investment:** For calculating the capital grant/assistance, "permissible capital investment" includes peripheral infrastructure (boundary wall, internal roads, and other basic structural facilities), structure and building, plant, indigenous and imported machinery and equipment, material handling equipment, mechanical, electrical, and plumbing installations, fixtures, furniture and fittings, waste management facilities, transformers, generators, captive power plants, and other auxiliary facilities installed for use on the premises and their related installation expenses.
• **3. Excluded Capital Investment:** Investment in "land and land development," pre-construction expenses, consulting fees, capitalised interest, and working capital will not be included in the calculation for the capital grant.
• **4. Conditions:** Full payment by the investor for all capital assets and complete ownership of the project is required. All capital assets must be installed and used at the project site.
• > **Interest Subsidy Reimbursement:**
• **1. Amount:** 3% interest subsidy on term loans.
• **Category A districts:** Maximum ₹4,00,000 per year, per unit. - **Category B districts:** Maximum ₹5,00,000 per year, per unit. - **Category C districts:** Maximum ₹6,00,000 per year, per unit.
• **2. Intended Use:** Applicable to eligible tourism units on term loans taken from notified commercial banks, financial institutions, state government cooperative banks, regional rural banks, or financial institutions recognised by the Government of India/State Government for financing the permissible capital investment.
• **3. Conditions:** The interest subsidy reimbursement will be payable for a maximum of 3 years from the date of commercial operation commencement. The percentage of interest subsidy reimbursement will be calculated annually based on the interest paid by the unit on the term loan after commercial operation commences.

Eligibility Criteria
1. The applicant should be a permanent resident/entrepreneur of Uttarakhand.
2. The applicant's proposed investment in identified tourism activities/operations should be between ₹1,00,00,000 and ₹5,00,00,000.
3. The applicant's unit should be registered as a sole proprietorship/partnership/LLP/private limited company, or any other legal entity. The participation in all these companies/organizations must be exclusively by permanent residents/entrepreneurs of Uttarakhand.
4. The applicant's unit should be established on fully owned land. If the unit is to be built on leased land, the remaining lease period must be more than 10 years.
5. The applicant should obtain in-principle approval (CAF) through the Single Window Portal under the Uttarakhand Udhyam Ekul Khidki Sugamata aur Anugyapan Adhiniyam, 2012 (as amended), prior to establishing a new unit or expanding an existing one. This is necessary for the grants mentioned under this scheme.
6. The applicant's unit should provide a minimum of 70% permanent local employment.
7. The applicant's tourism unit should be mandatorily registered with the State Goods and Services Tax Department.
8. Units that commence commercial operations under this scheme within 180 days from the date of the notification will need to submit documentation and records for capital investment assistance in a comprehensive and clear manner.
9. The right to interpret the rules/provisions of this scheme, or to add, remove, or modify new tourism activities, is vested with the Uttarakhand Government.

Required Documents
• Sale/Lease Deed (related to the purchase/lease of land/built-up area for tourism projects, applicable if executed during the scheme period and for stamp duty reimbursement)
• Loan Agreements (for project commencement, applicable if executed during the scheme period and for stamp duty reimbursement)
• Mortgages And Pledges (for project commencement, applicable if executed during the scheme period and for stamp duty reimbursement)
• Goods And Services Tax (GST) Returns (required annually for 10 years after Commercial Operation Date for Capital Grant disbursement)
• Income Tax Returns (ITR) (required annually for 10 years after Commercial Operation Date for Capital Grant disbursement)
• Details Of Unit Shareholding (required annually for 10 years after Commercial Operation Date for Capital Grant disbursement)
• Affidavit Of Commercial Operation (required annually for 10 years after Commercial Operation Date for Capital Grant disbursement)
• Approved Conceptual Application Form (CAF) (mandatory for grants under the scheme, obtained through the Single Window Portal)
• Documents Related To Capital Assets Ownership And Payment (required to verify full ownership and payment of capital assets for capital grant calculation)

Frequently Asked Questions
Q: What is the minimum and maximum investment range for projects to be eligible under this scheme?
A: Projects must have a permissible capital investment ranging from ₹1,00,00,000 to ₹5,00,00,000 to be eligible under this scheme.

Q: Which specific body is responsible for the implementation of the Scheme?
A: The Uttarakhand Tourism Development Council (UTDC) is the specific body responsible for the implementation of this scheme.

Q: Is there a 100% stamp duty reimbursement available under this scheme, and what does it cover?
A: Yes, 100% stamp duty reimbursement is available, covering deeds for land/built-up area purchase/lease, loan agreements, and mortgages/pledges executed during the scheme period.

Q: When is the stamp duty reimbursement disbursed to the eligible tourism unit?
A: The stamp duty reimbursement is provided in a lump sum after the tourism unit commences commercial operation (COD).

Q: How is the capital grant amount determined for different district categories?
A: The capital grant varies by district category (A, B, C) and is calculated as a base amount (₹33,00,000) plus a percentage of additional permissible capital investment above ₹1,00,00,000.

Q: What is the maximum capital grant available for projects located in Category A districts?
A: For projects in Category A districts, the maximum capital grant available is ₹80,00,000.

Q: What is the maximum capital grant available for projects located in Category B districts?
A: For projects in Category B districts, the maximum capital grant available is ₹1,20,00,000.

Q: What is the maximum capital grant available for projects located in Category C districts?
A: For projects in Category C districts, the maximum capital grant available is ₹1,50,00,000.

Q: What types of investments are not included when calculating the eligible capital investment for the grant?
A: Investment in land and land development, pre-construction expenses, consulting fees, capitalised interest, and working capital are not included.

Q: How is the capital grant disbursed to the eligible tourism units?
A: The capital grant is disbursed in two equal instalments over two years after the tourism unit commences commercial operation (COD).

Q: What is the requirement regarding land ownership or lease for establishing a unit under this scheme?
A: The unit must be established on fully owned land, or if on leased land, the remaining lease period must be more than 10 years.

Q: Can units that have received similar benefits from other government schemes also apply for this scheme?
A: No, units that have received similar benefits from any other Central or State Government scheme are not eligible for this scheme.

Q: How does an applicant submit an application for financial incentives under this scheme?
A: Applications for all financial incentive assistance must be submitted online through the designated portal of Invest Uttarakhand.

Q: What is the role of the District Tourism Development Officer in the application process?
A: The District Tourism Development Officer examines and physically verifies the received online application and forwards it with recommendations to the Uttarakhand Tourism Development Council headquarters.

Q: Which committee is responsible for sanctioning grants and financial incentives under this scheme?
A: The State Level Authorised Committee, chaired by the CEO of the Uttarakhand Tourism Development Board (UTDB), is responsible for sanctioning grants.

Q: What information must a unit submit annually for 10 years after its Commercial Operation Date (COD) for capital grant disbursement?
A: The unit must submit GST returns, ITR returns, details of unit shareholding, and an affidavit of commercial operation annually for 10 years after COD.