(a) whether the Government has any scheme for construction of
budget hotels/ guest houses in the country;
(b) if so, the details thereof alongwith the projects sanctioned during
each of the last three years and the current year in this regard,
State-wise;
(c) the funds sanctioned and utilised by the State Governments
during the said period, State-wise; and
(d) the details of completed and pending projects in this regard,
State-wise?
MINISTER OF STATE IN THE MINISTRY OF TOURISM (SHRI SULTAN AHMED)
(a), (b), (c) and (d): To encourage the growth of budget hotels, the
following incentives have been announced:
(i) Five Year Tax Holiday for 2, 3 and 4 star category hotels located
in all UNESCO declared World Heritage sites (Except Mumbai and
Delhi) for hotels operating w.e.f. 01.04.2008 to 31.03.2013.
(ii) Incentive under 35 AD of the Income Tax Act: An investment
linked deduction Under Section 35 AD of the Income Tax Act has
also been announced in the Union Budget 2010-2011 for
establishing new hotels of 2 star category and above, all over
India thus allowing 100% deduction in respect of the whole or
any expenditure of capital nature excluding (land, goodwill and
financial instruments) incurred during the year
Construction of hotels is primarily a private sector activity,
however, the Ministry of Tourism under the scheme
“Product/Infrastructure Development for Destinations and Circuitsâ€
provides Central Financial Assistance (CFA) for construction of
wayside public conveniences. Further, CFA is also provided for
construction of budget accommodation to the North-Eastern States,
Jammu & Kashmir and for eco-tourism projects where private sector
investment is not forthcoming. The details of the State wise projects
sanctioned during the first 3 years of the XI Plan period which include
projects of budget accommodation in the North Eastern States &
Jammu & Kashmir are at Annexure.