Newstrack

Mayawati writes off UP's Hotel Policy

Affects over 10 new hotel projects in Nodia, Greater Noida and Ghaziabad

Praveen K Singh - New Delhi

Citing corruption and shady deals in land auctions, UP chief minister, Mayawati has scrapped the Hotel Policy 2006 brought out by the previous government and is redrafting a new Hotel Policy, which will be announced shortly.

In an exclusive to Express Hospitality, Mayawati cited, "We had to take this decision as most of the land auctioned was done through shady deals, resulting in heavy corruption by the land allotting agencies."

She said that the state government is redrafting a Tourism Policy, which will be announced by March 2008.

Accepting the growth potential of the sector, she admitted, "We know several international events are coming up and the room count is less in the region, but we want an all-inclusive policy that are long lasting and far-sighted."

She categorically specified that UP has much more potential than any other state and the government is geared up to tap the sector. "We are drafting a masterplan, where we will identify areas to be explored and promoted," she announced.

She said that the land-owning authorities would identify land in their particular area and allocate the same to the hotel industry. "These authorities will be empowered to identify lands and effect land use change if land is not allocated under the appropriate category," she declared.

According to an insider, land for the hotel will be allotted based on industrial rates rather than commercial rates.

Vijay Pandey, general secretary of UP Hotels and Restaurants Association said, "We are planning a representation to the chief minister, to request her to take into consideration the mid-segment category, as only this category can provide a boost to tourism in the region."

He said that the association is also demanding tax holidays in mid-segment and non-star categories.

Earlier, the previous government had decided to constitute committees at all division-levels to set aside land for hotels and incorporate them in the masterplan, in addition to bestowing five-year luxury tax holiday on rooms, which come at rates in excess of Rs 1,000 per day. The decision has also affected the allotment of over 10 new hotel plots in the areas of Noida, Greater Noida and Ghaziabad, which were auctioned in the last two years.