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Tourism Policy – 2016


The Tourism Policy 2016 is formulated to promote Sustainable & Green Tourism with a view to create employment opportunities. The Policy promotes Odisha as one stop destination to experience cultural heritage and eco-tourism.

Ease of Doing Business
  • Single Window Clearance for time bound clearances of all applications
  • A three-tier single window clearance mechanism to facilitate speedy implementation of industrial projects is in place
Infrastructure & Development
Land and Property banks
  • Department of Tourism (DoT) will provide land
  • Creation of a land bank
Special Tourism Zones
  • Special Tourism Zones in regions with huge tourism potential.
  • Special incentives for tourism Zones
Human Resource Building/ Capacity Building
  • Setting up new Hotel Hospitality and Hotel Management Institutes/Universities through Private Participation
  • Encouragement to Tourism, Hospitality and Travel Management related courses in the private sector
  • Short term courses relating to capacity building for hospitability industries

This policy will be co-terminus with the IPR 2015

Parameter Eligible Investment Subsidy Limit
Capital Investment Subsidy Rs.20 lakh - 50 Cr. 20% Rs. 10 crore
Rs.50 Cr. & above 20% Rs. 15 crore
Tented accommodation with minimum Rs. 0.20 crore 30% Rs. 0.15 crore
Equipment worth Rs. 1 crore or more for Adventure & Water sports 20% Rs. 0.50 crore
Additional 5% for:
  • Projects around Chilika Lake, KBK, Kandhamala and Gajapati districts
  • Projects owned by Women, SC, ST or differently abled entrepreneurs
Interest Subsidy
  • 5% per annum up to Rs. 1 crore for 5 years
Stamp Duty exemption
  • 100% exemption on purchase of land for the project
Land conversion charges
  • 100% reimbursement
Reimbursement of VAT
  • 100% for a period of 7 years limited to 200% of cost of plant and machinery/ 100% of project cost, whichever is lower
Reimbursement of Entertainment Tax
  • 100% for a period of 5 years for New Multiplex Cinema halls of at least 3 screens with investment of Rs. 3 crore, Public Aquarium, Aqua park & Amusement Park
  • Exemption of electricity duty up to a contract demand of 5MVA for 5 years
  • Onetime reimbursement of energy audit cost up to Rs. 1 lakh
Reimbursement of Entry Tax
  • 100% for acquisition of plant & machinery
  • 100% on raw material for 5 years up to 100% of cost of plant & machinery
Employment Cost Subsidy
  • 75% for male workers for 5 years
  • 100% for female workers for 5 years
Environmental protection infrastructure subsidy
  • 20% of the capital cost of setting up effluent treatment plant/sewerage treatment plant up to Rs. 20 lakh
Training Subsidy
  • Rs. 2000 per employee trained within 3 years
Transport industry
  • 75% exemption from registration charges and 50% concession from payment of permit charges for AC coaches with minimum 25 seats
Participation in overseas Tourism Events
  • 50% of the space rent and travel expenses to a maximum of Rs. 75000
Film Shooting subsidy
  • 75% of actual expenditure in accommodation in Odisha to be reimbursed up to Rs. 10 lakh

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