Operation & Maintenance of VIP Guest House Tourism & Hospitality Government of Uttarakhand Contents Tourism Scenario on India Uttarakhand – Key Credentials Uttarakhand Overview Project Concept Project Financials Connectivity Policies, Schemes & Incentives Key Contacts Page 2 Tourism Scenario in India ECONOMIC SCENARIO ► 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 Emerging Tourism segments in India Rural Tourism Film Tourism Adventure Tourism Green Tourism Medical Tourism 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 3 Source: WTTC - TRAVEL & TOURISM ECONOMIC IMPACT 2018 INDIA www.InvestIndia.gov.in Uttarakhand – Key Credentials INDIAN AND FOREIGN TOURIST ARRIVALS 400 345.8 350 1.6 1.42 1.4 300 1.2 250 1 200 0.8 150 0.54 0.6 105.4 100 0.4 50 0.2 0 Tourist Arrival in Uttarakhand - Indian 2001 0 Total Arrival in uttarakhand - Foreign 2017 2001 2017 Figures In lakhs CONNECTIVITY - UTTARAKHAND 55 min Gauchar Chinyalisaur Pithoragarh DELHI 6 hr 4 hr (240 km) Dehradun Pantnagar Page 4 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… Availability of Cheap and Reliable Power 01 Abundant Availability of Good Water Resources Transparent Land Allotment with Land Availability at Competitive Prices 09 Uttarakhand: The Ideal Investment Destination Skilled Manpower Availability Well performing state in ‘Ease of Doing Business’, with a compliance of 98.10%** 08 Handholding Through Investment Promotion & Facilitation Centre 07 04 05 Page 5 10 02 03 World Class Integrated Industrial Estates Good Law & Order; State with one of the lowest mandays lost due to industrial strife in India 06 Proximity to NCR and within influence region of AKIC Sector Specific Policies providing fiscal & Non fiscal incentives Sources: *Uttarakhand at a glance 2016, DES, GoUK ** CSO & Directorate of Economics & Statistics, GoUK *** Evaluation of BRAP 2017 Reform Evidence, DIPP 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 6 Project Concept (2/3) PICTURES OF THE PROPOSED PROPERTY Page 7 Project Concept (3/3) AVAILABLE INFRASTRUCTURE Land Area 2.4 Acres Total Construction Area 0.82 Acres Ground Floor Normal Rooms – 21 Rooms Suits 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 8 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% 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 Y-to-Y increase 2% Maximum occupancy 60% 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 9 Connectivity PROJECT LOCATION - HARIDWAR ► 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) Nearby Tourist Destination Chamba Mussoorie Rishikesh Rajaji National Park CONNECTIVITY TO THE PROJECT SITE Rail Road Nearest railway station: Haridwar Air Delhi – 248 km, Dehradun – 53 km Rishikesh – 19.8 km, Chandigarh – 203 Km Page 10 Nearest Domestic Airport Jolly Grant Airport, 38 km Approvals and Clearances Required 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 ► Certification from Electrical Inspector For release of temporary connection up to 10 KW ► License for setting up a shop for retail sale of the Excisable Articles where requisite amount has been deposited & requires no extension in the existing network ► arrangement: a. LT Temporary connection b.HT License for setting up a shop for retail sale & wholesale of denatured spirit Temporary connection ► ► To provide new connections from the existing Permission for DTH under The Uttarakhand DTH broadcasting Service ( Exhibition ) Rules,2009 network after the deposit of the amount as per the application form a. LT Permanent connection b. HT ► Club Permanent connection ► ► Building Plan Approval Permission under Uttarakhand Entertainment and License for setting up a Hotel, Bar, Restaurant & ► ► Luxury Tax Registration Registration of the Establishment under Uttarakhand Dookan and Vanijya Adhisthan Betting Tax Act, 1979 Adhiniyam ► Permission for Cable Television under The Uttarakhand Cable Television Network ( Exhibition) ► Construction workers Rules,2012 ► License under FSSAI ► License to Operate ► Permission under Section 143 of UPZALR from Registration under Building and Other ► Registration under Motor Transport Worker Act ► Registration and license under The Inter-state migrant workmen [Regulation of Employment and Conditions of service] Act, 1979 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 Page 11 ► CST Registration Ease of Doing Business Hassle free setup and operations in the state Online Single Window System for all required approvals for setting up business Auto renewal of Consent to Establish, Consent to Operate Single Point Sectoral Clearances Self / Third party certification in lieu of departmental inspections Investment facilitation centre to handhold investors I Single Integrated return for all labour laws Use of modern supervisory control and data acquisition system to ensure reliable supply of electricity Objective Criteria for land allotment Commercial Court set up in Dehradun with entire state jurisdiction Geographic information system of all land banks Assured & Timely disposal of applications along with Deemed approvals 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 Step Step Step 01 02 03 200+ Investor Services covered under the Uttarakhand Single Window Facilitation and Clearance Act, 2012 & the Uttarakhand Right to Services Act, 2011 Page 12 POLICIES, SCHEMES & INCENTIVES Industrial Development Scheme 2017 Central Capital Investment 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 Comprehensiv e Insurance Incentive 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 Note: Units which have commenced production on or after 01 st of April, 2017 will be allowed to register with DIPP on or before 30th of September, 2018 Page 13 POLICIES, SCHEMES & INCENTIVES Uttarakhand Tourism Policy 2018 ► Tourism Sector has been accorded Industry Status ► Tourism Units are eligible for electricity tariff on industrial rate Categorization of industries for the purpose of quantum of incentives Category Category A Included Region Whole Districts of Pithoragrah, Uttarkashi, Chamoli, Champawat, Rudraprayag and Bageshwar ► ► Category B ► ► Category B+ ► ► ► ► Category C ► ► Category D Page 14 ► 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+) 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 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 Whole Districts of Haridwar and UdhamSingh Nagar Remaining area of District Dehradun and Nainital (which are not included in category ‘B’, ‘B+’ and ‘C’) POLICIES, SCHEMES & INCENTIVES Uttarakhand Tourism Policy 2018 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.) Category A : 40% (Max. up to INR 40 Lakh) Category B : 35% (Max. up to INR 35 Lakh) 1 Capital Subsidy Category B+ : 35% (Max. up to INR 35 Lakh) 10% or Max. upto 1.5 Cr. for hilly districts 10%or Max. 1 Cr. for plain districts Category C: 30% (Max. up to INR 30 Lakh) Category D : 15% (Max. up to INR 15 Lakh) Category A: 10% (Maximum up to INR 8 Lakh/ year / unit) Category B & B+ : 8% (Maximum up to INR 6 Lakh/ year / unit) 2 Interest Subsidy Category C: 6% (Maximum up to INR 4 Lakh/ year / unit) 7% or Max. upto 25 Lakh 7% or Max upto 35 Lakh 7% or Max. upto 50 Lakh Category D: 5% (Maximum up to INR 3 Lakh/ year / unit) Stamp Duty Concession (only on tourism related projects) Category A, B, B+, C: 100% 50 % stamp duty* Category D: 50% *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% 5 Electricity Duty & rate As per Industrial norms 6 Conversion & Development Charges 3 50% 50% Concession of Rs. 1 per unit and concession on electricity duty till 5 years after establishment of the unit Land use and development charges shall be reimbursed at the time of commencement of commercial operations. 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. 7 Special Incentive Scheme for Women Entrepreneur 8 Concession on Land Registration fees Rs. 1 per thousand 9 ETP 30 % capital subsidy or Max. upto Rs. 50 Lakh 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 Page 15 Key Contacts Uttarakhand Tourism Development Board 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 Investment Facilitation Centre Address Directorate of Industries Industrial Area, Patel Nagar, Dehradun, Uttarakhand Website www.investuttarakhand.com Email ID ifc.uttarakhand@gmail.com Toll Free 18002701213 Phone +91-135- 2559898, 2559987 Declaimer: This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision
