Grants Provisioned under Uttarakhand Tourism Policy, 2023

Under Uttarakhand Tourism Policy, 2023, the following grants are allowed to investors:-

The following capital subsidy is provided for tourism projects to be set up by making capital investment in the tourism sector in the state. Grants are admissible:

Maximum capital grant for housing projects:

Category A – up to 25%

Category B – up to 35%

Category C – up to 50%

The grant will be given as per the following details:

a) The maximum admissible capital subsidy shall be disbursed in 10 equal annual installments from the date of commencement of commercial operations, i.e., 10% of the total capital subsidy per annum;

OR

b) The subsidy amount shall be equivalent to 75% of the net State Goods and Services Tax (SGST) paid by the unit during the preceding 12 months, + applicable additional incentives, whichever is lower.

Additional Annual Incentives for Residential Projects:

i. Incentive for Marketing and Publicity – Up to a maximum of 1% of the capital grant.

ii. Incentive for Training and Skilling – Up to a maximum of 0.5% of the capital grant.

iii. Interest Subsidy – Up to a maximum of 1% of the capital subsidy.

iv. Incentive for Waste Treatment – Up to a maximum of 0.25% of the capital subsidy.

v. Incentive for Bookings through Online Travel Agencies/Platforms Developed by the State – Up to a maximum of 0.25% of the capital grant.

Capital Grant for Development of Tourism Products and Services – Grant of up to 100% of the capital asset

Grant will be provided as per the following details:

a) Capital subsidy shall be disbursed in 5 equal annual installments from the date of commercial operation, i.e., 20% of the capital subsidy per annum, or

b) The subsidy shall be 75% of the net State Goods and Services Tax (SGST) paid by the unit for the last 12 months, + additional incentive, whichever is lower.

Additional Annual Incentives for Development of Tourism Products and Services

i. Incentive for Marketing and Publicity – Up to a maximum of 2% of the capital grant.

ii. Incentive for Training and Skilling – Up to a maximum of 2% of the capital grant.

iii. Interest Subsidy – Up to a maximum of 2% of the capital subsidy.

iv. Booking through Online Travel Agency/Platform Developed by the State – Up to a maximum of 1% of the capital grant.

Turnover Linked Incentive – A provision of turnover-based grants is available for tourism projects that are already operational and not receiving a capital grant. The following incentives are permissible:

a) Premium Residential Units – Up to a maximum of 1% of the eligible turnover.

b) Incentive on Foreign Tourist Stay – Up to a maximum of 1% of the eligible turnover.

c) MICE, Organization of Art, Social and Cultural Events, Fairs, and Festivals – Up to a maximum of 1% of the eligible turnover.

Incentive for Heli-Transport – From Sahastradhara, Jolly Grant, and Pantnagar helipads to the nearest residence or helipad, a subsidy of ₹500 per person per leg shall be provided to the unit for helicopter transport.

Reimbursement of Electricity Duty – 100% reimbursement of electricity duty shall be provided to new eligible tourism units for the duration of the policy period.

Reimbursement of Stamp Duty – New eligible tourism units shall receive reimbursement of the applicable stamp duty in five equal installments.

To qualify for grants under the Tourism Policy 2023, the minimum investment requirement for new or expansion projects ranges from ₹1 crore to ₹5 crore, depending on the category and location of the project. Investors must also ensure the provision of minimum required infrastructure, compliance with prescribed conditions, and adherence to other regulations specified in the guidelines. Detailed information is available in the Operational Guidelines.

Minimum investment and infrastructure development requirements prescribed for tourism projects, products, and services identified under various NIC codes mentioned in the Tourism Policy.

Any legitimate entity or investor interested in investing in the tourism sector, in accordance with applicable regulations and meeting the eligibility criteria specified in the Tourism Policy 2023 and its Operational Guidelines, shall be eligible to receive the grants provided under the policy.

In cases where land is required for project implementation, the investor must either possess land in Uttarakhand or acquire it through purchase or lease within the state for the purpose of executing the project.

Online

Investors must first apply for In-Principle Approval through the Single Window System at https://investuttarakhand.uk.gov.in. This requires investors to fill in their details, project information, land details, and the scheme they wish to benefit from. Before investing, investors must have all the necessary documents ready. Details of the required documents are also available on the Single Window System.

For MSME proposals of up to or less than ₹50 crore, the General Manager, Industries Department, forwards the proposal to the District Industries Centre. The District Industries Centre then evaluates the project and forwards it to the relevant line departments for in-principle approval and comments. The relevant line departments subsequently submit their initial approval or disagreement on the project online to the Industries Department, along with the reasons for their decision.

Proposals for non-MSME projects (investments exceeding ₹50 crore or as amended from time to time) are submitted through the Single Window Portal to the Nodal Officer at the Directorate of Industries. The Nodal Officer forwards these proposals to the relevant line departments at the state level for in-principle concurrence or dissent comments. The relevant line departments then submit their initial concurrence or dissent comments online to the Department of Industries, along with the reasons for their decision.

As per the Uttarakhand Enterprise Single Window Facilitation and Licensing Act, 2012, in-principle approval for MSME projects (investment less than or equal to ₹50 crore or as amended from time to time) is granted by the District Level Empowered Committee (DLEC) constituted at the district level.

As per the provisions of the Uttarakhand Enterprise Single Window Facilitation and Licensing Act, 2012, in-principle approval for investment in non-MSME projects is granted by the State Level Empowered Committee (SLEC) constituted under the chairmanship of the Chief Secretary.

After receiving in-principle approval, the investor applies for various departmental clearances such as land use change, fire safety, environmental clearance, electricity connection, drinking water supply, and building plan approval through the Single Window Portal or the respective departmental services. After obtaining these pre-construction clearances/approvals, the investor begins construction of the project.

Upon completion of the proposed project, the investor must apply to the concerned departments — such as the Environment Department, Development Authority, Travel Trade Registration, and the Tourism Department (for the Occupancy Certificate) — for the necessary departmental clearances, approvals, and registrations prior to commencing project operations (Consent to Operate).

After receiving all required No Objection Certificates (NOCs), registrations, and certificates, the applicant may begin the commercial operation of the unit.

Only after the commencement of commercial operations can the investor apply for the grants mentioned in the Tourism Policy, as per the prescribed rules. Any eligible tourism unit may apply for the grant provided under the Tourism Policy within 150 days from the end of the relevant financial year, through the Single Window Portal, along with the documents specified in the rules. The online application for the grant must be submitted by the concerned unit on the Single Window Portal using the CAF ID allotted earlier.

Upon receipt of the online grant application form by the Tourism Department, the department will forward it to the District Level Tourism Committee (DLTC), constituted under the chairmanship of the Chief Development Officer (CDO) of the concerned district, for verification of certificates and on-site inspection.

The District Level Tourism Committee will conduct an on-site inspection, examine the necessary documents, and submit its joint inspection report to the Tourism Department online. After reviewing the received report and supporting documents, the concerned grant proposal will be presented before the Integrated Tourism Committee (ITC), constituted under the chairmanship of the Chief Executive Officer (CEO) at the Tourism Headquarters.

The ITC will examine the grant proposal and submit it, along with its recommendations/comments, to the State Level Empowered Committee (SLEC), constituted under the chairmanship of the Chief Secretary. Financial approval of the proposal will be granted by the SLEC. Based on the final financial approval received from the SLEC, the approved grant amount will be transferred online to the investor/applicant’s bank account by the Uttarakhand Tourism Development Council (UTDC).

Note - All grants shall be subject to the rules and provisions specified in the Tourism Policy and Operational Guidelines, as amended from time to time.

Applicants are required to submit the necessary documents in accordance with the guidelines specified under the Tourism Policy, 2023.