In a significant move aimed at stimulating economic growth and boosting infrastructure, the Bihar State Cabinet, led by Chief Minister Nitish Kumar, has given its approval to the Bihar Tourism Policy 2023. The policy is designed to facilitate comprehensive development and attract investments in the tourism sector.
During a press conference at the Secretariat auditorium, Abhay Kumar Singh, Tourism Secretary, underscored the global importance of tourism in economic and social activities. Drawing examples from countries such as Sri Lanka, Malaysia, Thailand, and Indian states like Jammu and Kashmir, Goa, Sikkim, and Rajasthan, Singh emphasised the potential for economic stability and growth through tourism. Estimates by the tourism department suggest that the newly approved policy could attract investments totaling Rs 10,000 crore.
Present at the press conference were Bihar Tourism Development Corporation Managing Director Nand Kishore and Tourism Director Vinay Kumar Rai.
Multi-faceted Objectives
The first goal is the creation of world-class infrastructure, with a focus on achieving top-notch facilities that enhance the overall tourism experience. Another key objective is the development of diverse and attractive tourist offerings through the creation of tourist products and infrastructure. To support these endeavours, the policy emphasises the need for a talented workforce, advocating for skill training initiatives to ensure the industry has the necessary expertise. Furthermore, there is a strong emphasis on tourist safety and facilities, with a commitment to maintaining the highest standards of safety and excellence. Lastly, the policy advocates for the implementation of technology-focused tourism, aiming to incorporate cutting-edge technology in various tourism initiatives. Overall, the policy envisions unprecedented growth in the tourism sector, anticipating positive impacts on economic activities, job creation, and business opportunities within the state. Financial incentives are set to be extended to beneficiaries and investors contributing to the advancement of the tourism sector.
Subsidies
A subsidy of 30 per cent will be provided for investments up to Rs 10 crore, with a maximum cap of Rs 3 crore. For investments up to Rs 50 crore, a 25 per cent subsidy will be applicable, with a cap set at Rs 10 crore. In the case of investments exceeding Rs 50 crore, a 25 per cent subsidy will still apply, but the cap is raised to Rs 25 crore.
Subsidy Reimbursement Milestones
50 per cent upon the commencement of commercial operations, followed by 25 per cent after 2 years, and a final 25 per cent after 5 years.
Additional Financial Incentives
Additional financial incentives outlined in the policy include a 100 per cent reimbursement for the Land Conversion Fee, ensuring the complete return of this expense. For the Stamp Duty and Registration Fee related to the lease, sale, or transfer of land, a 100 per cent lump-sum reimbursement is provided. The reimbursement of State Goods and Services Tax (SGST) stands at 80 per cent, applicable for five years from the date of commercial operation, with a cap set at 100 per cent of the sanctioned project cost. New tourism units benefit from a 100 per cent Electricity Duty Reimbursement for the initial five years. Moreover, empaneled entities are eligible for a reimbursement of 5 per cent of the monthly remuneration paid to recognised tourist guides for a period of two years, with a maximum monthly limit of Rs 5,000 per guide. The policy also encourages green practices by offering a 50 per cent reimbursement of the certification fee for obtaining green certification from an internationally recognised agency, capped at Rs 10.00 lakh. Additionally, there is a Meetings, Incentives, Conferences, and Exhibitions (MICE) incentive, entailing a 50 per cent GST reimbursement for the organising costs of meetings, exhibitions, conferences, and events.
