Govt to offer 10% subsidy on loans for budget hotels

Govt to offer 10% subsidy on loans for budget hotels
PTI
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First Published: Wed, Mar 14 2007. 02 18 AM IST
Updated: Wed, Mar 14 2007. 02 18 AM IST
A subsidy of 10% is offered on the loans to promote the construction of budget-category hotels in India, the Rajya Sabha was informed on Tuesday. In a reply, the minister of tourism and culture Ambika Soni said a tax holiday for five years for the budget hotels has already been announced by the finance minster in the Union Budget. This would apply to hotels being constructed in Delhi and some adjoining districts to promote investment in this sector. Construction of hotels is primarily a private sector activity and the ministry only facilitates the process, Soni said. The ministry is in constant touch with various land-owning agencies such as railways, civil aviation ministry, DDA, urban development ministry and state land-owning agencies for identifying additional hotel sites, the minister said. An estimated 30,000 additional hotel rooms will be required in Delhi and the NCR to meet the requirement of Commonwealth Games 2010.
A budgetary allocation of Rs 10 crore has been proposed for the year 2007-2008 for creation of land banks for hotels, the minister said. PTI PR APS
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First Published: Wed, Mar 14 2007. 02 18 AM IST