NEW DELHI, Jan 24: In anticipation of the Union Budget, the Confederation of Indian Industry (CII) has recommended that the hotel sector be granted ‘infrastructure status’ without being tied to geographical or demographic limitations.
This change would enable hotel developers in smaller towns to secure bank loans at more favorable interest rates.
Currently, only three-star or higher category hotels situated in cities with populations over 1 million qualify for infrastructure status.
CII presented an eight-point initiative to boost tourism ahead of the upcoming Budget, stating that recognizing hotels’ infrastructure status regardless of their location would facilitate access to long-term funding at reduced interest rates and extended repayment terms, which are crucial given the sector’s longer gestation time.
The organization also urged the establishment of 200 new tourist destinations in a timely fashion, recognizing India’s vast tourism potential.
Additional recommendations from CII include the launch of Mission Suraksha and the Incredible India 3.0 or Atulya Bharat campaign.
Furthermore, the industry body suggested placing tourism on the concurrent list ‘to elevate its significance on the national agenda and enable effective legislation and collaboration between the Centre and States.’
“At present, tourism is not included in any of the three lists in the Seventh Schedule of the Indian Constitution, which outlines the distribution of powers between the Centre and the States,” it noted.
The Finance Minister, Nirmala Sitharaman, will present the Budget 2025 in Parliament on February 1, 2025. (UNI)
