Industry status

“The status of industry for tourism can benefit the sector”


The state’s department of industries submitted a report to the government suggesting that the tourism sector in Uttarakhand could be granted industry status, a senior official said on Sunday.

A proposal to give tourism industry status in the state was also raised in 2004, but it was not implemented, said Secretary of State for Tourism Dileep Jawalkar.

A decision to grant industry status to tourism is being considered by the ministry and the proposal has been submitted to the government for approval, he said.

It is an important sector because Uttarakhand is projected as a state of tourism in the whole world. The Chardham Yatra annually attracts over 2 crore of pilgrims to the state.

If tourism is granted industry status, it will help the sector in the state, said SC Nautiyal, director of the state’s industries department.

“The biggest benefit will be the electricity tariff,” he said.

Right now, there are three categories of electricity tariffs in the state, including domestic, commercial and industrial, Nautiyal said.

“If tourism is given industry status, then hotels, lodges, resorts and other tourism infrastructure will be eligible for industrial tariffs which will give the industry a boost as the tariffs are lower than commercial tariffs. ”

Currently, hotels in mountainous regions have been granted micro, small and medium-sized enterprises (MSMEs) status, but lowland hotels have not included it, he said.

“After giving industry status to tourism, it will become applicable to all hotels and resorts in the state and tourism as a whole will benefit from MSME policy.”

Nautiyal, however, said entrepreneurs in the sector would not get any additional benefits like getting land or bank loans.

The main benefit, however, will be that concessions given to industries will become applicable to tourism-related units, helping them to maximize their profits, he said.