Uttarakhand Tourism Entrepreneur Promotion Scheme
Uttarakhand Tourism Entrepreneur Promotion Scheme
The Uttarakhand Tourism Entrepreneur Promotion Scheme aims to bolster the tourism sector by providing financial assistance to permanent residents and entrepreneurs in Uttarakhand. This initiative is designed for those who invest between ₹1 crore to ₹5 crore in tourism-related ventures, thereby encouraging local entrepreneurship and enhancing the state's tourism offerings.
Overview of the Scheme
Launched by the Tourism Department of the Uttarakhand Government, this scheme focuses on providing various financial incentives to stimulate investment in the tourism industry. The incentives include stamp duty reimbursements, capital grants, and interest subsidies, specifically tailored for local entrepreneurs engaging in predefined tourism activities.
Objectives
- Facilitate the establishment and growth of small tourism enterprises by local investors.
- Create job opportunities in the tourism sector through financial support and incentives for local investments.
- Encourage competitive entrepreneurship and promote inclusive economic development in the region.
- Enhance high-quality infrastructure in selected tourism activities with investments between ₹1 crore to ₹5 crore.
- Ensure equitable distribution of benefits from tourism development across all regions in Uttarakhand.
This initiative aligns with the goals outlined in the Uttarakhand Tourism Policy 2023, which emphasizes the promotion of tourism-related projects that contribute to the overall economic prosperity of the state.
Classification of Areas for Financial Incentives
| Category | Eligible Areas |
|---|---|
| Category A | Haridwar, Nainital, Udham Singh Nagar, and specified areas of Dehradun, Ranikhet, and Almora tehsils. |
| Category B | Remaining areas of Almora, Kalsi, Chakrata, Tyuni tehsils of Dehradun, Garud tehsil of Bageshwar, and selected tehsils of Pauri Garhwal and Tehri Garhwal. |
| Category C | Uttarkashi, Chamoli, Champawat, Rudraprayag, Pithoragarh, and remaining areas of Bageshwar, Pauri Garhwal, and Tehri Garhwal. |
Identified Activities Eligible for Financial Incentives
- Maintenance of cultural and historical heritage.
- Parking facilities at tourist attractions.
- Development of ropeways and funiculars.
- Expansion of existing hotels and resorts.
- Establishment of floating resorts and platforms.
- Creation of heritage hotels and tourist villages.
- Construction of MICE (Meetings, Incentives, Conferences, Exhibitions) centres.
- Setting up of tourism training centres focused on hospitality.
- Development of wellness resorts focusing on yoga and Ayurveda.
- Establishment of amusement parks and museums.
Financial Benefits
Stamp Duty Reimbursement
- Amount: 100% reimbursement of applicable stamp duty.
- Conditions: Available for new tourism units based on eligible deeds executed during the scheme's duration.
- Reimbursement is granted post the commencement of commercial operations.
Capital Grant/Assistance
- Category A: ₹33,00,000 plus 15% of additional investment over ₹1,00,00,000, max ₹80,00,000.
- Category B: ₹33,00,000 plus 25% of additional investment over ₹1,00,00,000, max ₹1,20,00,000.
- Category C: ₹33,00,000 plus 30% of additional investment over ₹1,00,00,000, max ₹1,50,00,000.
Eligible capital investments include all necessary infrastructure and facilities required for establishing or expanding tourism units, while investments in land and pre-construction expenses are excluded from the grant calculation.
Eligibility Criteria
- Applicants must be permanent residents or entrepreneurs of Uttarakhand.
- Investment in tourism activities must be between ₹1 crore and ₹5 crore.
- The business entity should be registered as a sole proprietorship, partnership, LLP, private limited company, or any legal form with all stakeholders being Uttarakhand residents.
- The unit must be established on owned or long-term leased land (minimum 10 years remaining).
- In-principle approval is required via the Single Window Portal under the Uttarakhand Udhyam Ekul Khidki Sugamata aur Anugyapan Adhiniyam, 2012.
Application Process
To apply for the scheme, follow these steps:
- Visit the official Invest Uttarakhand portal.
- Click on "Login as" and select "Create an account."
- Fill in the required details to register.
- Choose your registration type.
- Provide all necessary investor information, including PAN, name, legal entity, contact details, and address.
Required Documents
Applicants must submit relevant documentation to support their application, which typically includes:
- Proof of identity and address
- Business registration documents
- Investment proposals
- Land ownership or lease agreements
By leveraging the benefits of the Uttarakhand Tourism Entrepreneur Promotion Scheme, local entrepreneurs can significantly contribute to the state's tourism landscape while enhancing their own business prospects.
Eligibility Criteria
The applicant should be a permanent resident/entrepreneur of Uttarakhand.
The applicant's proposed investment in identified tourism activities/operations should be between ₹1,00,00,000 and ₹5,00,00,000.
The applicant's unit should be registered as a sole proprietorship/partnership/LLP/private limited company, or any other legal entity. The participation in all these companies/organizations must be exclusively by permanent residents/entrepreneurs of Uttarakhand.
The applicant's unit should be established on fully owned land. If the unit is to be built on leased land, the remaining lease period must be more than 10 years.
The applicant should obtain in-principle approval (CAF) through the Single Window Portal under the Uttarakhand Udhyam Ekul Khidki Sugamata aur Anugyapan Adhiniyam, 2012 (as amended), prior to establishing a new unit or expanding an existing one. This is necessary for the grants mentioned under this scheme.
The applicant's unit should provide a minimum of 70% permanent local employment.
The applicant's tourism unit should be mandatorily registered with the State Goods and Services Tax Department.
Units that commence commercial operations under this scheme within 180 days from the date of the notification will need to submit documentation and records for capital investment assistance in a comprehensive and clear manner.
The right to interpret the rules/provisions of this scheme, or to add, remove, or modify new tourism activities, is vested with the Uttarakhand Government.
Benefits
Stamp Duty Reimbursement:
1. Amount: 100% of the applicable stamp duty.
2. Intended Use: For new eligible tourism units to receive reimbursement on the stamp duty paid on:
Sale/lease deeds related to the purchase/lease of land/built-up area for tourism projects, provided the sale/lease deed is executed during the scheme's validity period.
Loan agreements are made for initiating the project during the scheme's validity period.
Mortgages and pledges were made for initiating the project during the scheme's validity period.
3. Conditions: The stamp duty reimbursement will be provided in a lump sum after the tourism unit commences commercial operation (COD). The application for stamp duty reimbursement must be submitted along with the capital grant application.
Capital Grant/Assistance:
1. Amount: Financial grant/assistance will be provided based on the permissible capital investment for establishing new or expanding existing eligible tourism units in the identified categories.
Category A districts: ₹33,00,000 plus 15% of the additional permissible capital investment above ₹1,00,00,000, with a maximum grant of ₹80,00,000.
Category B districts: ₹33,00,000 plus 25% of the additional permissible capital investment above ₹1,00,00,000, with a maximum grant of ₹1,20,00,000.
Category C districts: ₹33,00,000 plus 30% of the additional permissible capital investment above ₹1,00,00,000, with a maximum grant of ₹1,50,00,000.
2. Eligible Capital Investment: For calculating the capital grant/assistance, "permissible capital investment" includes peripheral infrastructure (boundary wall, internal roads, and other basic structural facilities), structure and building, plant, indigenous and imported machinery and equipment, material handling equipment, mechanical, electrical, and plumbing installations, fixtures, furniture and fittings, waste management facilities, transformers, generators, captive power plants, and other auxiliary facilities installed for use on the premises and their related installation expenses.
3. Excluded Capital Investment: Investment in "land and land development," pre-construction expenses, consulting fees, capitalised interest, and working capital will not be included in the calculation for the capital grant.
4. Conditions: Full payment by the investor for all capital assets and complete ownership of the project is required. All capital assets must be installed and used at the project site.
Interest Subsidy Reimbursement:
1. Amount: 3% interest subsidy on term loans.
Category A districts: Maximum ₹4,00,000 per year, per unit.
Category B districts: Maximum ₹5,00,000 per year, per unit.
Category C districts: Maximum ₹6,00,000 per year, per unit.
2. Intended Use: Applicable to eligible tourism units on term loans taken from notified commercial banks, financial institutions, state government cooperative banks, regional rural banks, or financial institutions recognised by the Government of India/State Government for financing the permissible capital investment.
3. Conditions: The interest subsidy reimbursement will be payable for a maximum of 3 years from the date of commercial operation commencement. The percentage of interest subsidy reimbursement will be calculated annually based on the interest paid by the unit on the term loan after commercial operation commences.
Application Process
Apply OnlineRegistration Process:
Step 1: Visit the Official Portal
of Invest Uttarakhand.
Step 2: Click on "Login as" located in the right corner. On the login page, you will find a "Create an account" option; click on it.
Step 3: A new page
will open. Begin the registration process to create a new account.
Step 4: Select Registration Type:
Choose your registration type from the available options: "Investor On Behalf of Investor" or "Exhibitor", or "Organiser."
Step 5: Provide Investor Information:
Enter your PAN Card number, Enter your full name, Provide the name of your legal entity, Mobile Number, Enter your mobile number, Input your complete address, Select your country, Select your state, Enter your district, Provide your email address, Create a password for your account, Re-enter the password to confirm it, Once all required fields are filled, complete the registration.
Step 6: Click on "Registered" to proceed to the login page.
Login Process:
Step 1: Visit the Official Portal
of Invest Uttarakhand.
Step 2: Click on "Login as" located in the right corner.
Step 3: Investor Login:
Once registered, the applicant can log in using their registered credentials (IUID/Email and Password).
Step 4: Choose Category/Fill Details:
The applicant will likely need to choose the relevant business category (e.g., tourism unit) and fill in enterprise details, details of the managing director/partner/CEO, authorised coordinator, financial indicators, and organisational details.
Step 5: Common Application Form (CAF):
The scheme document mentions the mandatory in-principle approval (CAF) through the Single Window Portal. This suggests that a Common Application Form will be a key part of the online application process.
Step 6: Upload Documents:
Necessary documents (as per the scheme's requirements, listed previously) will need to be uploaded online. Click on "Submit" to submit the form.
Notes:
Tracking Application: Applicants can track their application status online at any time through the Official Portal
of Invest Uttarakhand.
Verification and Approval: The application will undergo verification by authorities (District Tourism Development Officer, Nodal Officer at UTDB, State Level Authorised Committee). Site inspections may also be conducted.
Issuance of Certificates/Approvals: Upon approval, digitally signed certificates or licenses can be downloaded from the website.
References & Official Links
Scheme Details
| Full Name | Uttarakhand Tourism Entrepreneur Promotion Scheme |
| Short Title | UKTEPS |
| Level | State |
| Scheme For | Infra |
| Categories | Business & Entrepreneurship, Travel & Tourism |
| States | Uttarakhand |
| Gender | All |
| Area | Both |
| Source | www.myscheme.gov.in ↗ |