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Economic Development Policy

TOURISM Back.....  
PRIVATE SECTOR PARTICIPATION

The state believes that in today’s scenario, the role of the government shall change from an implementer and promoter to that of a facilitator, a catalyst and co-ordinator. However in the short term, the government shall play a proactive role to leverage private sector participation in the tourism sector.

The government is committed to creating an enabling environment for actively involving the private sector in the development of Tourism in the state. It has planned to do the same through 
» Creating an Enabling Institutional Mechanism
» Involving the private sector in policy formulation
» Ensuring a level playing field
 
Creating an Enabling Institutional Mechanism

The government will endeavour to create a conducive environment for private sector participation. To remove bottlenecks, to ensure strong and sustained policy implementation and to encourage public private partnership, the government has set up an efficient institutional mechanism. It comprises of the following:

A Cabinet Sub Committee: Vision and sustained policy implementation are key to promoting MP as a must see tourism destination. To spearhead the development of tourism in MP and to ensure focussed attention on this sector, a high powered cabinet sub committee, headed by the Chief Minister with powers of the cabinet has been constituted.

The role of the Cabinet sub committee has been envisaged as follows:
» It will be the apex body for policy formulation in the tourism sector. 
» It will also ensure interdepartmental co-operation for the development of tourism in the state.
 
An Empowered Committee: To support and assist the cabinet sub committee an Empowered Committee headed by the Chief Secretary, has been constituted. It has provision for representation from the hotel and tours & travel industry.

The empowered sub committee will assist the cabinet sub committee in policy formulation and will be responsible for policy implementation. It has the following roles:
» The committee will ensure the speedy implementation of tourism programmes
» It will set up working committees on a need basis for eco-tourism, water sports etc.
» It will deal with other tourism related matters.
 
MPSTDC: The Madhya Pradesh Tourism Development Corporation will continue to carry out marketing activities for the promotion of tourism in the state. It will also be involved in developing tourist related infrastructure at the tourist destinations.

MP Heritage Development Trust: To ensure sustained heritage conservation efforts as well as to involve all stakeholders in the conservation process the MP Heritage Development Trust has been constituted. It is headed by the Chief Minister and includes as members eminent people in the field of conservation and heritage. It is currently involved with the following:
» Preparing a database of all heritage properties including natural heritage in the state.
» The first phase of this process will involve listing out the heritages in Bhopal, Indore, Gwalior and Jabalpur.
 
» Actively involving the local population in the development of monuments in the state by creating a stake for them in the process. This will help in the sustainable development of the monument as well as economic development of the people in the vicinity.

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As part of this exercise 42 villages have been identified in the Khajuraho Heritage Development Region. The development needs of the each village and the livelihood concerns of each family have been documented. Detailed development plans have been prepared after taking into account the ecological and environmental concerns as well as tourism and heritage requirements. Similar initiatives are planned in Mandu and Orchha.
 
» The state will also liaison for central financial assistance in developing ancient and heritage cities like Ujjain.
 
Involving the Private Sector in Policy Formulation

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The private sector has been involved in the preparation of the Eco-Adventure Tourism Policy.
 
» It was also involved in the process of rationalisation of tax structures.
 
» There is provision for the representation of the hospitality industry in the Empowered Committee set up under the chairman ship of the Chief Secretary.
 
Ensuring a Level Playing Field

The government has initiated the following to ensure that Madhya Pradesh offers a level playing field vis-à-vis other states.
» The government has declared Tourism as an industry. This will ensure that the benefits available to industry are also made available to tourism projects.
 
» Luxury tax will now be imposed on the actual tariff realised and not on the rack rate.
 
» 100% tax exemption will be provided on transport tax on tourism circuits and on vehicles used for eco tourism projects.
 
» The excise policy has been made more liberal for tourism. Quarterly bar license will be provided in places of tourist importance. Licences will be provided at concessional rates for eco tourism projects. Discounts offered will range from 10% to 50 % for various categories.
 
» The minimum guarantee purchase for three star and above hotels has been reduced by 25%.
 
» The government proposes to set up joint ventures with the private sector for developing 228 acres of land owned by the MP Tourism Development Corporation. The government is also offering Govindgarh Fort near Rewa for setting up a heritage hotel and for developing Residency Kothi, Indore as a heritage property. To make the ventures attractive for the private sector the government has permitted 60 years lease agreements for heritage properties.
 
» All investments in excess of Rs.50 Lakhs shall be eligible for the same concessions as other industry units.

 

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