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MUMBAI: By enticing the amusement sector with major economic
and land sops with its latest tourism policy, Maharashtra
has played a smart card in its bid to entice a return of industry
and to secure its place as India’s most developed state.
As an industry, the amusement, leisure and entertainment
sector is burgeoning, with national investment commitments
of Rs. 28 billion (as of 2006) and a growth rate of 25%.
The Indian Association of Amusement Parks and Industries (IAAPI),
has come out with a report that notes that the fact that Maharashtra
wants a lion share of future investments in the sector –
which is expected to surpass that of 2006 – is evident
in the timing of the ‘Tourism Policy 2006’; released
before the 7th annual IAAPI Trade Show held in Mumbai this
year.
The IAAPI is Indian amusement’s apex body and its annual
trade shows are the largest gathering of investors, park operators
and ride and equipment manufacturers from India and abroad.
Authored by Bhushan Gagrani, who is Mahrashtra’s secretary
of tourism, the ‘Tourism Policy 2006’ provides for
far-reaching financial sops and incentives for new as well as
existing amusement projects; the latter of which has been highly
appreciated by the industry.
IAAPI president Rajen Shah says, “The 2006 policy has
cleared the ambiguity which was prevalent in previous documents.
We compliment the MTDC in implementing such a progressive
policy as has been the need for some time. It (The policy)
receives an 8 on 10 in our books”.
Existing projects have been encouraged to increase facilities
by making them eligible if they ‘increase investment
in either fixed capital or capacity by atleast 50% of the
gross capital and capacity at the end of the last financial
year’; Section 5.2 (c).
Another important initiative is the considerable reduction
in the tax burden. A total exemption up to 10 years has been
provided from Luxury, Entertainment and Amusement taxes. “The
amusement industry is a service for society. The benefits
of tax rationalisation will be transferred to our guests,
making family outings more feasible and frequent,”adds
Shah.
A number of government agencies are also being roped in by
the Maharashtra government in its effort to reduce the time
frame to develop destination from 10 years to a short 2 years.
‘Hence it is proposed that all infrastructure providing
Departments (PWD, Irrigation, Power etc.) and Corporations
(MSRTC, Cidco, MMB, etc) shall reserve a minimum of five per
cent of their annual budget outlay to be spent strictly on
projects and development plans prepared by the Tourism Department’;
Section 17.
Tax exemption will be available to new units and expansion
of existing units (as per the conditions set out earlier)
in respect of the following taxes, up to 100 per cent of capital
investment or completion of the eligible period of 5, 7 or
10 years, whichever is earlier. The tax exemption will be
available to eligible units conforming to the list in Annexure
`B’ and falling within the eligible areas for a period
of 5,7 and 10 years respectively for A, B and C areas as shown
in Annexure `B’ subject to the condition hereinafter.
The certificate of entitlement and the eligibility certificate
shall automatically stand cancelled on completion of the above
period or the limit prescribed for eligible investment.
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