Tourism & Hospitality

Government of Uttarakhand

Operation & Maintenance of VIP Guest House

Page 2

Contents

Tourism Scenario on India

Uttarakhand – Key Credentials

Uttarakhand Overview

Project Concept

Project Financials

Connectivity

Policies, Schemes & Incentives

Key Contacts

Page 3

Tourism Scenario in India

► 7th Largest Tourism Economy in the World.

► 9th Largest in cultural resources and business travel in the world

► Direct contribution of travel & tourism to GDP is forecasted to become USD194.7bn in FY2028

► Travel & Tourism investment expected to rise to USD 85.2bn in FY 2028

► 58.5% growth forecast in Foreign Tourist Arrivals on e-Tourist Visa

► Increase in Tourism employment opportunities by 2.1% pa in next ten years

ECONOMIC SCENARIO

Emerging Tourism segments in India

Rural

Tourism

Adventure

Tourism

Medical

Tourism

Film

Tourism

Green

Tourism

Source: WTTC - TRAVEL & TOURISM ECONOMIC IMPACT 2018 INDIA

www.InvestIndia.gov.in

Growth Drivers of the Tourism industry

► Geographic and cultural diversity

► Rise in domestic household expenditure on tourism

► Improved Infrastructure

► E - Facilitation for Travel and Stay

► Government Initiatives - Medical visa or M visa, Visa – on – Arrival (VOA), Incredible India

campaign

Page 4

Uttarakhand –Key Credentials

INDIAN AND FOREIGN TOURIST ARRIVALS

Figures In lakhs

105.4

345.8

0

50

100

150

200

250

300

350

400

Tourist Arrival in Uttarakhand - Indian

2001 2017

0.54

1.42

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Total Arrival in uttarakhand - Foreign

2001 2017

DELHI

55 min

6 hr

4 hr

(240 km)

Chinyalisaur

Pantnagar

Gauchar

Pithoragarh

Dehradun

CONNECTIVITY - UTTARAKHAND

Page 5

Uttarakhand Overview

► The State of Uttarakhand was formed on 9th November 2000 as the 27th State of India, when

it was carved out of northern Uttar Pradesh

► The State is close to the National Capital Region (NCR) and has excellent connectivity with its

neighbouring states

► With levels of literacy rate* (78.80%) higher than the national average and the presence of

institutes of international repute, the State has abundant availability of quality human resources

► GSDP of the state stood at INR 2,17,609 Million with a growth rate of 11.23% (FY 2017-18)*

► The state offers a wide range of benefits in terms of interest incentives, financial assistance,

subsidies and concessions

► The Tertiary sector in the state contributes around 38.41% to the Gross State Domestic

Product (GSDP: 2016-17)**

Acknowledged for Ease of Doing Business & Peace of Doing Business…

01

Uttarakhand: The Ideal

Investment Destination

02

03

04

05

10

06

08

07

09

Availability of Cheap

and Reliable Power

Abundant Availability of

Good Water Resources

Transparent Land

Allotment with Land

Availability at

Competitive Prices

Skilled Manpower Availability

World Class Integrated

Industrial Estates

Good Law & Order; State

with one of the lowest man-

days lost due to industrial

strife in India

Sector Specific Policies providing

fiscal & Non fiscal incentives

Proximity to NCR and within

influence region of AKIC

Handholding Through

Investment Promotion &

Facilitation Centre

Well performing state in ‘Ease

of Doing Business’, with a

compliance of 98.10%**

Sources: *Uttarakhand at a glance 2016, DES, GoUK

** CSO & Directorate of Economics & Statistics, GoUK

*** Evaluation of BRAP 2017 Reform Evidence, DIPP

Page 6

Project Concept (1/3)

► Government of Uttarakhand proposes to invite private investors for the investment for

Operation and Management for the VIP Guest House at Haridwar.

► The VIP guest house is operational currently and is well maintained

► The scope of the investment will include

► Operate, maintain and manage the project and related services

► Procurement of the associated material, equipment, articles and necessary inventories from

the reputed vendors / manufacturers.

► Manning of front office by supervision

► Recruitment, management and training of staff required for operation of the project as per

National / International standards of the industry.

► Revenue Collection – Selected operator is free to fix and revise Room tariff.

PROJECT IMPLEMENTATION MODEL

OMT Model – Under this PPP model, the ownership of underlying assets remains with the

Government during the contract period and the project gets transferred back on contract

termination. The investor will operate, maintain and transfer back the assets after the

termination on the concession period.

Google Map of Haridwar

Latitude 29.9457° N, Longitude 78.1642° E

Link to locate the proposed location on Google Map

Page 7

Project Concept (2/3)

PICTURES OF THE PROPOSED PROPERTY

Page 8

Project Concept (3/3)

AVAILABLE INFRASTRUCTURE

Land Area 2.4 Acres

Total Construction Area 0.82 Acres

Ground Floor

Normal Rooms – 21 RoomsSuits with attached Balcony and sitting Area 2 Nos

Presidential Suits – 1 No. Dining Hall

Dining Hall Covered Car Parking

Kitchen Manager Office

Conference Hall Waiting Hall

Reception Lobby Office

Common Toilet (ladies & Gents) Store

Other Facilities: Centralized Air Conditioning, Fire Fighting System, Guard Hut and Gates, Landscaping, CCTV Camera, Underground water Storage, Overhead water Storage Tanks (4 Nos.), Kitchen Equipment, Crockery and Cutlery.

Page 9

Project Financials

FINANCIAL COMPONENTS (INDICATIVE)

Concession Period 30 years

Normal Rooms 21 Rooms

Suite 2 Rooms

Presidential Suite 1 Room

Occupancy Assumptions

Occupancy in

1st Yr

25%

Y-to-Y increase

2%

Maximum

occupancy

60%

Room Tariff 3000 – 7000 INR / Room/ Day

Y-to-Y increase 5%

Revenue from Events 10% of the room revenue

Revenue from F&B 40% of the room revenue

Cost of F&B 60% of the F&B revenue

Operating expenses 40% of the Total revenue

Event- O&M Expense 50% of revenue from events

Maintenance Expense 20% of Total revenue

One time Maintenance Expense 0.3 INR Crore

Payment to Government

Annual Lease Rent for the Project 0.2 INR Crore

Y-to-Y increase 5%

Royalty 5% of the Total Revenue

Equity IRR 18.78%

Project IRR 18.78%

It is assumed that no Debt has been taken by the investor in this project, resulting into same equity

and project IRR

Page 10

PROJECT LOCATION - HARIDWAR

Nearby Tourist Destination

CONNECTIVITY TO THE PROJECT SITE

Air

Road

RailNearest railway station:

Haridwar

Delhi – 248 km, Dehradun – 53 km

Rishikesh – 19.8 km, Chandigarh – 203 Km

Nearest Domestic Airport

Jolly Grant Airport, 38 km

► Haridwar popularly known as Gateway to Gods, is the gateway to the four pilgrimages of

Uttarakhand.

► It’s a starting point on the journey to the sacred sources of the rivers Ganga and the Yamuna

► Haridwar presents a kaleidoscope of Indian culture and civilization. it is one of the first towns

where Ganga emerges from the mountains to touch the planes.

► Tourist Arrivals (2017) – 20 lakh (Domestic), 23123 (Foreign)

Chamba Mussoorie

Rishikesh Rajaji National Park

Connectivity

Page 11

MANDATORY STATE APPROVALS FOR

SETTING UP OF BUSINESS

MANDATORY STATE APPROVALS

REQUIRED FOR STARTING OF BUSINESS

OPERATIONS

► Permission to purchase land under Section 154 of

UPZALR (Revenue

► For release of temporary connection up to 10 KW

where requisite amount has been deposited &

requires no extension in the existing network

arrangement: a. LT Temporary connection b.HT

Temporary connection

► To provide new connections from the existing

network after the deposit of the amount as per the

application form a. LT Permanent connection b. HT

Permanent connection

► Building Plan Approval

► Permission under Uttarakhand Entertainment and

Betting Tax Act, 1979

► Permission for Cable Television under The

Uttarakhand Cable Television Network ( Exhibition)

Rules,2012

► License under FSSAI

► License to Operate

► Permission under Section 143 of UPZALR from

Revenue Department / Change of Land Use for

Development Authority Land

► NOC to Display of Hoardings within the Acquired

and Controlled Area

► Registration under start up self-certification

scheme (Labour)

► Registration under Uttarakhand Start-Up policy

2018

► Certification from Electrical Inspector

► License for setting up a shop for retail sale of the

Excisable Articles

► License for setting up a shop for retail sale &

wholesale of denatured spirit

► Permission for DTH under The Uttarakhand DTH

broadcasting Service ( Exhibition ) Rules,2009

► License for setting up a Hotel, Bar, Restaurant &

Club

► Luxury Tax Registration

► Registration of the Establishment under

Uttarakhand Dookan and Vanijya Adhisthan

Adhiniyam

► Registration under Building and Other

Construction workers

► Registration under Motor Transport Worker Act

► Registration and license under The Inter-state

migrant workmen [Regulation of Employment and

Conditions of service] Act, 1979

► CST Registration

Approvals and Clearances Required

Page 12

Ease of Doing Business

Hassle free setup and operations in the state

Use of modern supervisory control and

data acquisition system to ensure

reliable supply of electricity

Online Single Window System for all

required approvals for setting up

business

Single Point Sectoral Clearances

Commercial Court set up in Dehradun

with entire state jurisdiction

Self / Third party certification in

lieu of departmental inspections

Auto renewal of Consent to

Establish, Consent to Operate

Investment facilitation centre to

handhold investors

Geographic information system of

all land banks

Single Integrated return for all

labour laws

Objective Criteria for land

allotment

I

Assured & Timely disposal of applications along with Deemed approvals

Step

01Step

02Step

03

In-Principle Approval:

Decisions on Project Proposals within 15 days

Pre-Establishment:

Approvals for pre-establishment services within 15 days

Pre-Operations:

Approvals for pre-Operations services within 30 days

200+ Investor Services covered under the Uttarakhand Single Window Facilitation and Clearance Act, 2012 &

the Uttarakhand Right to Services Act, 2011

Page 13

POLICIES, SCHEMES & INCENTIVES

Central Capital Investment Incentive for access to credit (CCIIAC) @

30% of the investment in plant and machinery with an upper limit of INR

5.00 crore

Central

Capital

Investment

Reimbursement of 100% insurance premium on insurance of building

and Plant & Machinery for a maximum period of 5 years from the date of

commencement of commercial production/ operation

Central

Comprehensiv

e Insurance

Incentive

Note: Units which have commenced production on or after 01st of April, 2017 will be allowed to

register with DIPP on or before 30th of September, 2018

Industrial Development Scheme 2017

Page 14

Category Included Region

Category AWhole Districts of Pithoragrah, Uttarkashi, Chamoli, Champawat,

Rudraprayag and Bageshwar

Category B

► Whole District of Almora

► All hilly development blocks of District Pauri Garhwal, Tehri

Garhwal (Excluding regions under category B+)

► All hilly development blocks of District Nainital and Dehradun

(Excluding regions under category B+)

Category B+

► Kotdwar, Sigaddi and adjoining plain regions of Dugadda

development block of district Pauri Garhwal

► Dhalwala, Muni Ki Reti, Tapovan and adjoining plain regions of

Fakot development block of District Tehri Garhwal

► Kotabagh development block of District Nainital

► Plain regions of Kalsi development block of District Dehradun

Category C

► Regions located above 650 mtrs from sea level in Raipur,

Sahaspur, Vikasnagar and Doiwala development blocks of District

Dehradun

► Ramnagar and Haldwani development blocks of District Nainital

Category D

► Whole Districts of Haridwar and UdhamSingh Nagar

► Remaining area of District Dehradun and Nainital (which are not

included in category ‘B’, ‘B+’ and ‘C’)

Categorization of industries for the purpose of quantum of incentives

► Tourism Sector has been accorded Industry Status

► Tourism Units are eligible for electricity tariff on industrial rate

POLICIES, SCHEMES & INCENTIVES

Uttarakhand Tourism Policy 2018

Page 15

S.No. Incentives Type Up to capital investment of INR 10 Cr.)Large

(10-75 Cr.)

Mega

(75 – 200 Cr.)

Ultra Mega

(More than

200 Cr.)

1 Capital Subsidy

Category A : 40% (Max. up to INR 40 Lakh)

Category B : 35% (Max. up to INR 35 Lakh)

Category B+ : 35% (Max. up to INR 35 Lakh)

Category C: 30% (Max. up to INR 30 Lakh)

Category D : 15% (Max. up to INR 15 Lakh)

10% or Max. upto 1.5 Cr. for hilly districts

10%or Max. 1 Cr. for plain districts

2 Interest Subsidy

Category A: 10% (Maximum up to INR 8

Lakh/ year / unit)

Category B & B+ : 8% (Maximum up to INR 6

Lakh/ year / unit)

Category C: 6% (Maximum up to INR 4

Lakh/ year / unit)

Category D: 5% (Maximum up to INR 3

Lakh/ year / unit)

7% or Max.

upto 25 Lakh

7% or Max

upto 35

Lakh

7% or Max.

upto 50 Lakh

3

Stamp Duty

Concession (only on

tourism related

projects)

Category A, B, B+, C: 100%

Category D: 50%

50 % stamp duty*

*Reimbursed after completion of work

4

Tax Incentives

(Reimbursement of

SGST after

adjustment of input

tax credit)

Category A: 100 % for the first 5 years and

90% thereafter

Category B & B+:

100 % for the first 5 years and 75%

thereafter

30% 50% 50%

5Electricity Duty &

rate

As per Industrial normsConcession of Rs. 1 per unit and concession on

electricity duty till 5 years after establishment of

the unit

6

Conversion &

Development

Charges

Land use and development charges shall be

reimbursed at the time of commencement of

commercial operations.

7

Special Incentive

Scheme for Women

Entrepreneur

In this scheme, Fiscal incentives such as

State Capital Subsidy on Fixed Capital

Investment: 25 % (Maximum up to INR 25

Lakhs).

Interest Subsidy on the interest of Bank

Loan: 6 % (Maximum INR 5 Lakhs per year)

shall be available to the eligible Women’s

Manufacturing / Service enterprises in the

whole State.

8Concession on Land

Registration feesRs. 1 per thousand

9 ETP 30 % capital subsidy or Max. upto Rs. 50 Lakh

Uttarakhand Tourism Policy 2018

POLICIES, SCHEMES & INCENTIVES

For the promotion of tourism, 10 % of the circle rate of the land will be charged as conversion fee for tourism and entertainment by housing department

Key Contacts

Uttarakhand Tourism Development Board

Investment Facilitation Centre

Address Directorate of IndustriesIndustrial Area, Patel Nagar, Dehradun, Uttarakhand

Website www.investuttarakhand.com

Email ID ifc.uttarakhand@gmail.com

Toll Free 18002701213

Phone +91-135- 2559898, 2559987

Address Pt. Deendayal Upadhaya Paryatan Bhawan, Near ONGC Helipad, Garhi Cantt, Dehradun

Website www.uttarakhandtourism.gov.in

Email ID investtourismuk@gmail.com

Phone +91-135- 2559898, 2559987, 8859955505

Declaimer: This project profile is based on preliminary study to facilitate prospective entrepreneurs toassess a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared beforetaking a final investment decision