- Published by Sandeep Yelve
- 11 Dec 2024
- Maharshtra Trourism Policy 2024
Maharashtra Government Subsidies for Hotel, Motel, Restaurant, and Other Tourism Projects
The tourism sector is one of the key growth drivers for Maharashtra, contributing significantly to the state's economy. With its diverse attractions, rich cultural heritage, and favorable climate, Maharashtra has long been a popular destination for both domestic and international travelers. To capitalize on this potential, the Maharashtra government has launched the Maharashtra Tourism Policy 2024. This comprehensive
policy aims to foster tourism development by providing attractive incentives, both fiscal and non-fiscal, for businesses investing in tourism-related projects such as hotels, motels, restaurants, and other ventures in the sector. In this blog, we’ll explore the various benefits under the Maharashtra Tourism Policy 2024, including fiscal and non-fiscal subsidies, and how they can help boost your tourism business.
Overview of the Maharashtra Tourism Policy 2024
The Maharashtra Tourism Policy 2024 is a strategic initiative to attract private investment into the state’s tourism industry, promote sustainable tourism practices, and create employment opportunities. It has a goal of attracting investments worth INR 1,00,000 crore over the next 10 years and creating 18 lakh jobs, both direct and indirect. To achieve these ambitious targets, the policy provides a wide range of fiscal and non-fiscal incentives to businesses that invest in tourism projects. These projects can include hotels, motels, restaurants, resorts, MICE (Meetings, Incentives, Conferences, and Exhibitions) venues, destination wedding locations, and other tourism-related businesses. Fiscal Incentives under Maharashtra Tourism Policy 2024 The government has introduced several fiscal incentives to reduce the cost burden for investors and encourage the establishment of world-class tourism infrastructure across the state. These fiscal benefits aim to make Maharashtra a more attractive destination for private investments.
1. Registration and Stamp Duty Waiver
Investors in eligible tourism projects can benefit from a complete or part waiver of registration and stamp duty fees, significantly reducing upfront costs associated with acquiring land or property for development.
2. 21% Electricity Duty Exemption
All tourism projects, including hotels, motels, and restaurants, are eligible for a 21% exemption from electricity duty, lowering their operating costs related to power consumption.
3. Power Tariff Subsidy
The government offers a power tariff subsidy, which helps businesses reduce their electricity bills, making the cost of running tourism facilities more manageable.
4. Capital Investment Subsidy
Eligible projects can receive a 20% or 15% subsidy on capital investments. The exact percentage depends on the project’s location within different zones of Maharashtra, with higher subsidies offered in underdeveloped or priority areas. This subsidy reduces
the capital burden on businesses when constructing or upgrading tourism infrastructure.
5. 100% or Part Net SGST Reimbursement
Under the policy, businesses can receive a 100% or Part reimbursement of the Net SGST (State Goods and Services Tax) paid on revenue generated by their tourism projects, offering a significant financial return on investments.
6. 5% Interest Subsidy
To encourage borrowing for project development, the government offers a 5% interest subsidy on loans, with a cap as per eligibility, helping reduce the cost of capital for new tourism projects.
7. Training and Skilling Incentives
Businesses that invest in training and upskilling their employees in the tourism sector are eligible for special incentives. This is to ensure that the sector develops a skilled workforce capable of delivering top-notch services.
8. Special Incentive Package for SC/ST and Women Entrepreneurs
Recognizing the need for inclusivity, the government has introduced additional 5% incentives for projects owned or operated by Schedule Castes (SC), Schedule Tribes (ST), and women entrepreneurs.
9. Subsidy on Green Initiatives
Incentives are available for businesses adopting eco-friendly practices, including energy-efficient technology, water conservation, and waste management systems, as part of the state’s effort to promote sustainable tourism.
10. Certification, Quality Upgradation, and R&D Subsidies
Businesses that invest in quality upgradation, research and development, or obtain certifications (such as green tourism or safety standards) are eligible for specific subsidies to help cover the associated costs.
11. Special Thrust Sector Incentive
Certain segments of the tourism industry, such as MICE operations and destination wedding venues, receive additional incentives due to their high potential for growth and contribution to tourism revenue.
12. Turnover-linked Incentives
Eligible Tourism Travel Agencies that demonstrate significant turnover growth are rewarded with additional incentives tied to their business performance.
Non-Fiscal Incentives under Maharashtra Tourism Policy 2024
In addition to financial subsidies, the government also offers various non-fiscal incentives to make the business environment more conducive to tourism investments.These include regulatory benefits and administrative support to streamline the process of developing tourism projects.
1. Additional FSI (Floor Space Index)
Tourism projects are eligible for additional FSI, allowing businesses to build larger facilities, such as hotels and resorts, without incurring additional land costs.
2. Project Category Definition
The policy provides clear definitions and categorizations for various types of tourism projects, ensuring that investors understand the eligibility requirements and benefits applicable to their specific business.
3. Industry Status for the Tourism Sector
The tourism sector has been granted industry status, allowing tourism businesses to access benefits typically reserved for industries, such as reduced electricity tariffs, lower property taxes, and access to industrial financing schemes.
4. Single Window Clearance
To reduce bureaucratic delays, the policy offers a single window clearance system, streamlining the approval process for new projects and making it easier for businesses to get started.
5. National Single Window System Integration
The integration of the National Single Window System ensures that tourism businesses can access all required approvals and permits from a single online platform, saving time and reducing administrative hurdles.
6. Land Bank and E-tendering Process
The government has established a land bank to provide businesses with access to suitable land for tourism development. The e-tendering process ensures that land allocation is transparent and fair.
7. Land Conversion Permissibility
The policy simplifies the process of converting land for tourism purposes, making it easier for investors to repurpose agricultural or industrial land for hospitality and tourism projects.
8. Availability of PPP Projects
The government encourages Public-Private Partnerships (PPP) in tourism development, offering businesses the opportunity to collaborate with the state on large-scale infrastructure projects.
9. Entrepreneurship Awards and Event Participation
The government recognizes and rewards tourism businesses through entrepreneurship awards, while also offering opportunities for businesses to participate in tourism-related events, exhibitions, and travel marts, increasing visibility and market reach.
Conclusion:
How Goezee Consultancy Can Help
Navigating the fiscal and non-fiscal incentives offered by the Maharashtra Tourism Policy 2024 can be complex, but the benefits are substantial. By investing in tourism projects such as hotels, restaurants, or MICE venues, businesses can access significant
subsidies that reduce project costs and enhance profitability. At Goezee Consultancy, we specialize in helping businesses unlock these benefits. With our expert team of Chartered Accountants, Advocates, and Management professionals, we guide you through the entire process—from eligibility assessment to final approval and subsidy disbursement.
Contact us today to learn how we can help you maximize the subsidies available under this policy and grow your tourism business in Maharashtra.