Government of Madhya Pradesh

New Tourism Policy
With the view to speed-up development of Tourism in Madhya Pradesh, the State Government announced a New Tourism Policy in January 1995. The new tourism policy envisages creation of an environment conducive to attracting increased private investment in the tourism sector, and a more meaningful role for the Government.

(Download Tourism Policy PDF... 2.33 MB) (Acrobat Reader Required)

Strategy for Development
The focus shall be on the following areas:

• Improvement and creation of adequate basic infrastructure - land, roads, water, electricity etc.
• Upgradation and augmentation of accommodation, catering and recreational facilities.
• Augmentation of transport facilities.
• Marketing of destinations to ensure optimal use of infrastructure.
• Evolving suitable policies for increasing foreign exchange earnings.
• Promotion of the arts and crafts of Madhya Pradesh.
  

Destinations & Activities:
These have been classified in the following categories for setting up various facilities:

	Places of Importance	Facilities
Cultural Tourism	Gwalior, Orchha, Khajuraho, Sanchi, Mandu.	Heritage Hotels, Museums, Craft Villages.
Wildlife & Adventure Tourism	Pachmarhi, Kanha, Bandhavgarh, Panna, Satpura, Pench Valley National Parks, Tigra Lake (Gwalior), Upper Lake (Bhopal), Gandhi Sagar (Mandsaur).	Log Huts, Camping Grounds, Trekking, Water-Sports, Aero-Sports, Angling, Cruises, Caravans, Tents etc.
Leisure & Business Tourism	Pachmarhi, Khajuraho, Bhopal, Gwalior, Indore, Mainpat, Tamia, Raipur, Jabalpur etc.	Convention Centres, Exhibition Grounds, Shopping, Evening Entertainment, Golf Courses, Country Clubs, Weekend Getaways etc.
Pilgrim Tourism	Ujjain, Maheshwar, Omkareshwar, Chitrakoot, Amarkantak, Rajim, Sanchi, Bhopal, Orchha etc.	Budget Accommodation, Day Shelters, Cafeterias etc.

Role of State Government
The State Government will confine its efforts to infrastructural development ensuring uninterrupted electricity, water supply and provision of basic medical facilities. It will also be responsible for dissemination of information, organisation of festivals and inter-departmental co-ordination to create conditions for attracting private sector investment for the tourism sector. For this it will provide fiscal incentives, assist in providing suitable sites and remove bottlenecks, especially those connected with infrastructural development.

Incentives
A special package of incentives for the tourism industry has been prepared. These incentives will also be available for private entrepreneurs for any of the following activities:

• Hotels, Motels and Restaurants.
• Heritage Hotels, Health Farms, Recreation Centres, Ropeways, Golf Courses, Museums, Amusement Parks, Craft Villages, Convention Centres, and all other bonafide tourism related activities recognised by the government.
• A/c Luxury Coaches, A/c Mini Buses, and imported Limousines purchased by registered tour operators for tourist transport.
• Activities connected with adventure tourism, such as hang gliding, para sailing, river rafting, boating, trekking, rock climbing etc.

The specific incentives are:

• Land
  1. Government land will be offered with the approval of the Empowered Committee as equity participation on behalf of the Government at current market value for setting up Joint Ventures.
  2. The companies thus formed who are given any kind of Government land will be expected to complete the project within a period of three years from the date of transfer of land, failing which the land will revert to the Government. The company will not be allowed to transfer the land to anybody else, or use it for any purpose other than that for which it is allotted.
  3. For construction of approved category hotels, etc. in the urban areas, exemption under Section 20 of the Urban Land Ceiling Act will be made available on a case-to-case basis as decided by the Empowered Committee.

• Luxury Tax
  New projects shall be exempt from Luxury Tax for ten years from the date of commencement of commercial operations.

• Sales Tax
  New projects shall be exempt from Sales Tax for ten years from the date of commencement of commercial operations.

• Entertainment Tax
  Entertainment Centres will be exempt from Entertainment Tax for ten years from the date of commencement of commercial operations.

Information required for Exemption of Luxury Tax /Commercial Tax/Entertainment Tax
(ENGLISH PDF... 64KB)/(HINDI PDF... 80KB) (Acrobat Reader Required)