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MoT INTRODUCES INTEREST SUBSIDY SCHEME FOR UPGRADATION OF GUEST HOUSES IN NCT, DELHI

The Ministry of Tourism (MoT) has introduced an ‘Interest Subsidy Scheme for the upgradation of Guest Houses’ in the National Capital Territory (NCT) of Delhi. The scheme has been introduced in view of the forthcoming Commonwealth Games, Delhi – 2010 and in order to encourage growth of budget accommodation of the approved / licensed guest houses in NCT of Delhi.

The scheme applies to all licensed guest houses in the NCT of Delhi which have been approved by the Department of Tourism (DoT), Government of Delhi, MoT, Government of India as per the schemes for approval of guest houses. The interest subsidy will be applicable for loans taken to upgrade the existing facilities which are allowed as per the prevailing civic bylaws of Delhi Development Authority / Municipal Corporation of Delhi / New Delhi Municipal Council etc. In order to be eligible for the interest subsidy, the permissions, if any, of the concerned civic authorities on civil works to be undertaken (wherever applicable) should be obtained by the guest houses.

The interest subsidy will be applicable to loans for up gradation of rooms (flooring, furniture like bed, table, chair, luggage rack / cupboard, bathroom fixtures including WC and wash basin, geyser, RO machine for drinking water, A/C, electric light fittings), common areas like lobby / reception area, façade and infrastructure development like supply of electricity, water and installation of solar heating and lighting etc. The guest house will require incurring a minimum of 7.5 per cent of the loan amount availed from the Financial Institution (FI) towards the improvement / beautification of façade / outside improvements, signages and lighting as per the permissible norms.

Since the proposed interest subsidy scheme is meant for upgradation of guest houses for Commonwealth Games 2010, the subsidy will be applicable for loans that are sanctioned and first installment has been released up to July 31, 2010 with the up gradation works to be completed by September 20, 2010. A certificate of completion of the upgradation works has to be furnished by the FI. The subsidy will be released on quarterly basis by MoT directly to the Financial Institution / scheduled bank on submission of claim in the prescribed manner.

Interest Subsidy proposals will take into account the number of rooms as licensed by MCD / Delhi Police. MoT will provide interest subsidy on loan of maximum Rs two lakh per room basis. Guest house may seek higher loan but the payment of interest subsidy will be calculated at Rs two lakh per room subject to an overall upper limit of Rs 60 lakh per guest house.

The scheme will be operated through Tourism Finance Corporation of India (TFCI), scheduled and nationalised banks. The interest on loan will be charged as per policy of the FI and rate of interest charged by it and the terms and conditions of the loan agreement between lender and borrower will be as per the government policy.

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