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Development of

Film City

Tourism
Government of Gujarat
Contents

Project Concept 3
Market Potential 5
Growth Drivers 7
Gujarat – Competitive Advantage 8
Project Information 12
- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players/ Machinery Suppliers
- Potential collaboration opportunities
- Key Notes
Project Financials 18
Approvals & Incentives 20
Key Department Contacts 22

Page 2
Project Concept

Film City: Overview

 A Film City is a studio complex that provides all the facilities required for film making to movie
producers across the globe, including providing the flexibility to use the outdoor spaces for
shooting purposes easily.

 It comprises several studios, sets, backlots, a wide range of production and postproduction and
other film industry services/facilities that can accommodate several film and television
productions simultaneously.

 A Film City is not only used by film makers but also serves as a popular tourist spot and
recreation centre featuring many natural and artificial attractions including gardens, landscapes,
amusement parks, statues, miniatures, streets, hotels, restaurants and shopping destinations.
Tourists can take studio tours across the complex.

Film City Tourism: Overview

Objectives: Importance:

 Produce an economically viable facility that  Increase the revenue to the government
would help fund the films being produced exchequer, through various types of taxes
and keep the studios and building operable,
 Develop the area as a tourism hub covering
thus being self sufficient
all aspects of film making - screening of
 Create a platform that intends to encourage films, documentaries etc.
the public, the audiences to feel the
 Generate direct and indirect employment
cinematic journey of film making
 Develop infrastructure of the surrounding
 Provide a visual emblem and a one stop
areas
shop depicting the excellence of cinema,
rides for thrills, exhibition spaces, theatres  Encourage arts and artists and give them
for live shows, recreational zone, and other the opportunity to showcase their talent
tourist attractions  To attract foreign filmmakers to such an
integrated studio complex facility

Page 3
Project Concept

Film Production: Overview


India is the largest film producing industry in the world and its cinema is becoming increasingly
popular in various countries around the globe. Bollywood is a powerful medium that provides
entertaining information on history, civilization, variety of cultures, religions, socio-economics and
politics in various regional languages. More and more people, irrespective of their ethnicity, watch
Bollywood films in many parts of the world, thereby creating the need to promote the industry.

Benefits of Film Production

Enhancement of local  Opportunities for local film productions houses for co-production
film production by collaborating with foreign studios in international markets.
 For example, Eros International has entered into agreements
with three major Chinese state-owned film and entertainment
companies to promote, co-produce, distribute and unlock value
in respective intellectual properties for Sino-Indian films across
platforms in both the countries.

Increased revenues for  Economic activities stimulated by film productions result in tax
the Government revenues for local or State Governments. The taxes collected by
Central, State and local governments increase with higher film
productions in the region.

Creation of  International/large film productions rely on local labour which


employment helps boost employment opportunities and incomes.

Boost to the Tourism  Films shot at host locations introduce the audience to the
Industry country’s diversity and exotic locations, hence, attract tourists.
 The host location is expected to gain visibility due to film
production and associated publicity generated from it.

Benefit to the economy/  Film production creates additional production activity and a
allied industries sustainable market place in the local economy, resulting in the
development of allied industries such as post production, travel,
hospitality, catering, etc.

Technological/  Facilitates collaborations between local and foreign enterprises


Cultural exchange and expose local production units/ crews to global standards of
production practices.
 Exposes filmmakers to diverse cultures and nationalities
 Encourages knowledge-sharing of latest film-making techniques

Page 4
Market Potential

Indian Film Industry: Overview

Aspect US (Hollywood) India (Bollywood)

Market size (2015-19 CAGR) $29.2B (2%) $2.1B (11%)

Blockbuster production budget $200-$250M $12-$15M

Blockbuster publicity and


$125-$150M $2-$3M
advertising budget

Total budget $325-$400M $14-$18M

Number of films produced (2015) 791 1,500-2,000

 India is the 5th largest film market in the world – generated $1.6 billion of
theatrical revenue, contributing 4% to worldwide theatrical revenue in 2015.

 The Indian film industry is vibrant, with almost double the number of movies
produced in the US. Also, nearly 80% of the films produced in India are in more
than 20 regional languages.

 The film industry in India is very fragmented with hundreds of film production
studios in India – many of them owned by film celebrities. In contrast, top six
studios in the US generate more than 80% of box-office receipts. Hollywood
studios such as Fox, Viacom and Disney have their co-production and distribution
arms in India.

 Low investments in high-quality scripts and star-centric films have limited the
international appeal of Indian films. However, that is changing fast. Indian
audiences are becoming more discerning (driven by urbanization, rising middle
income group, and exposure to Hollywood films), allowing Indian film-makers to
provide strong content driven films, which enjoy better international appeal.

Page 5
Market Potential

Film City - Key Trends

1. Success of regional films

 Strong regional content is gaining acceptance in both domestic as well overseas market. Baahubali,
a Telugu-language film, became the highest grossing film within India and third highest globally.
 Around 60% of all movies produced in India are in the four South Indian languages – Telugu, Tamil,
Kannada and Malayalam. Cinema in southern India, especially Tamil and Telugu, may soon surpass
Bollywood which accounts for 43% in terms of the share of box office collections by language.

2. Strong content

 Indian audience is growing more discerning toward strong content. Unlike the last few years when
star-centric films invariably did well at box office, 2015 saw quite a few such films failing at the box
office due to lack of strong content.
 In 2015 five of the leading 10 films were low budget (less than INR500 million i.e. $7.5 million) films,
which were mainly driven by strong content.

3. Growing digital platforms

 While the online video market is still at its infancy in India, there is tremendous potential for
producers to target the 100 million online video viewers in the country. India has seen a host of new
OTT video service launches recently – Viacom18’s VOOT, Netflix, Star India’s Hotstar, etc.
 Studios are also experimenting with online releases of movies. With only 35%-40% of movies in
India getting a country-wide theatrical release, small-budget/regional films could be released and
monetized online. Example Toss, a Kannada film, was released online along with theatrical release.

4. Converting single screen theaters into


multiplex
 To recover screen growth, operators are focusing on converting the single screen theatres to two or
three screen multiplex as it is one of the cost-effective options.
 Though the number of seats per screen will reduce, multiple screens would lead to increase in
footfall and average ticket price due to content flexibility. Further, the new facility may be able to
attract family audience rather than the current male dominated audience in single screen cinemas.

Page 6
Growth Drivers

Growth Drivers for Film City

 66% of the population in India is below 35 years, with the


median age of 27 years driving consumption. Young 0 - 14 >34
years, years,
Demographic population forms the potential customers for the film city. 31% 34%
dividend  While Film City offers recreational options for all age 15 - 34 years,
groups, it has the greatest attraction for the age group of 35%

0-14 years which drives families for an outing.

 By 2020, 35% of the population will reside in urban centres, with nuclear
households. Higher incomes and fewer holidays would drive growth of
Greater weekend/single-day holidays, to spend time with family.
urbanisation
 The proportion of the working-age population is expected to rise to 46% by
2020, raising the amount of income per household.

 India’s per capita income at the current market price is estimated to increase
at a CAGR of 15% to INR190,000 in 2014-2020E.
Rising per
capita  Moreover, share of discretionary spend is expected to increase from 59% in
income FY10 to 67% in FY20. Within discretionary spend, the share of leisure is
expected to increase at a CAGR of 6.4%.

 The number of domestic and international tourists is going to increase in the


coming years and reach up till 2,775 million and 13 million in 2025, respectively.

India - Domestic Tourists (in million) India - International Tourists (in million)
Growth in
tourist flow 2,775 13
2,099 10
1,422 8
6
865

2011 2015 2020E 2025E 2011 2015 2020E 2025E

Page 7
Gujarat - Competitive
Advantage
Mapping Gujarat Tourism

Business Tourism
 High presence of Indian
and global companies
Archeological and Heritage Entertainment Tourism
 18 SEZs operational
Tourism  Longest shoreline of 1,600
km - beaches, forests, hills,
 Variety of historical forts, Science City, theme parks,
palaces, dargahs, temples Gujarat zoos, lakes
 Proactive Government and
aggressive marketing
 Untapped tourism opportunity
 Strategic location
 Unique blend of pilgrimage, adventure,
hill station, beaches,
Cultural Tourism Wild Life Tourism
heritage, desert
 Handicrafts such as  Rarest and large number
bandhani, patolas, kutchi of flora and fauna
 Fairs and festivals like  Four national parks and
navratri, makarsankranti Religious Tourism 21 sanctuaries
 Home to multitude
devotional centres and
temples like Dwarka,
Dakor, Ambaji, Somnath

Key Initiatives to promote tourism in Gujarat


 Eight tourism hubs have been created for the convenience of tourists visiting Gujarat. These
are in Ahmedabad metro, Ahmedabad (north Gujarat); Surat (south Gujarat), Vadodara (central
Gujarat), Rajkot, Junagadh and Jamnagar (Saurashtra) and Bhuj (Kutch).
 Gujarat Infrastructure Development Board has prepared concession agreement model under
PPP for the development of tourism sector projects in Gujarat
 Gujarat State Transport Authority has issued all India tourist permits to tourist buses and taxis.
 The state government has implemented Panchavati Yojana, with the objective of providing
facilities for recreation in villages and encouraging environment friendly activities to develop
natural sites with tourism potential.
 The Tourism Corporation of Gujarat Limited (TCGL) and Infrastructure Leasing & Finance
Services Limited (IL&FS) formed a joint venture company named Gujarat Tourism Opportunity
Limited (GUJTOP) to promote the state’s tourism industry.
 Emerging areas in Gujarat’s tourism industry are spiritual tourism, heritage tourism, cultural
tourism, event based tourism, water and adventure sports, nature tourism, cruises, theme
parks, convention centres for meetings and conferences.

Page 8
Gujarat - Competitive
Advantage
Gujarat stands at an excellent business opportunity for domestic and
international tourists

Domestic Tourists (in lakhs) International Tourists (in lakhs)

CAGR: 1,233 22
CAGR:
14.1% 13.2%

637 12
376 7
194 4

FY11 FY16 FY20E FY25E FY11 FY16 FY20E FY25E

Source: Tourist Flow Information System- Annual Report 2015-16


 The total flow of tourist is expected to record an increase over the years
 This is attributed to the growing prominence of the state as a major business hub.

Total contribution to GDP Total Investment (USD billion) Employment (in million)

CAGR: CAGR:
5.0% 3.00
5.76% 11.0% 4.00 CAGR:
15.63%

2.7%

0.95
0.81

2014 2025P 2014 2025P 2014 2025P

Source: Tourism Policy for state of Gujarat(2015-20)

 Tourism in India accounts for 7.5% of the GDP and is the third largest foreign exchange earner
for the country. Gujarat is expected to contribute 5% to the total GDP by 2025.
 The business is expanding both in terms of turnover and boundaries and therefore
contributions total investments by Gujarat are expected to increase.
 Today worldwide, one in eleven jobs may be ascribed to the tourism industry. Gujarat is
expected to generate 3 million jobs by 2025.

Page 9
Gujarat - Competitive
Advantage
Gujarat Film Industry: Overview
 Gujarati film industry, referred as Quick facts
Dhollywood or Gollywood, is one  In 2015, the box office collection for Gujarati films was
of the major regional and over INR550 million, up from INR70 million in 2014.
vernacular film industries of India Films such as ‘Gujjubhai the great’, ‘Chhelo divas’ and
associated with the Gujarati ‘Be yaar’ have performed well at the box office.
language. The industry dates back
 In 2011, the average number of screens playing a
to 7 April 1932.
Gujarati movie stood at 20-25, while in 2015, the
 Recently, Gujarati films have been average went up to 150-160, an increase of almost
performing well at the box office, 600%.
raising hopes of the revival of the  Over 2011 to 2015, total number of screens in Gujarat
Gujarati film industry after a has increased from 450 to 625, an increase of 39%.
decade-long slump.
 Until a few years ago, the average cost of making a
 Unlike films in the past, there has Gujarati movie was around INR3 million to INR4
been a spurt in urban-centric films million. Today, producers spend INR15 million to
with growing investment in it. INR20 million for a good quality film.

To provide a significant boost to regional cinema, Gujarat Government has announced a new
improved policy to promote and encourage production of quality films in Gujarati Cinema. This is
in addition to the single-window clearance mechanism laid by the state in 2014.
Salient Features of the Policy

 A Film Screening Committee comprising of 10 experts will be


 Encourage
setup to assess every film.
production of
 Besides Film Screening Committee, public response to the film good-quality
will be taken into consideration in the assessment of the film. Gujarati films to
 Based on the assessment of the committee and public spread essence of
The new policy will

response, films will be given grades. Gujarati culture.


 On the basis of the grades, the filmmaker will receive financial  Generate
assistance ranging from INR0.5 million to INR5 million. employment
 Children’s Film and films revolving around the subject of opportunities for
‘Women Empowerment’ will receive additional 25% financial youth
assistance.  Encourage the
filmmakers to
 Gujarati films that receive Government of India’s ‘Rajat Kamal’
make Gujarati
award will be given INR10 million reward.
films that will put
 Similarly, any Gujarati film that wins award at International stage Dhollywood on
will be given reward ranging from INR20 million to INR50 million. par with other
 Financial assistance and support will be extended to a film only regional cinemas.
if it is shot on 35mm or has 2K Resolution/Higher Format.

Page 10
Gujarat - Competitive
Advantage
Gujarat has been named as the most film friendly state for its effort to
ease the shooting of films, attracting filmmakers
 In the past, several Bollywood films have The Gujarat Advantage
been shot in the state: Singham Returns,
Goliyon Ki Raasleela Ram-Leela, Kai Po  Accommodation is reasonably priced
Che, Lagaan, Refugee, Hum Dil De  Availability of cheap labor
Chuke Sanam, Prem Ratan Dhan Payo,  Ahmedabad and Vadodara are well-
 Some upcoming movies being shot in connected to Mumbai
the state include: Mohenjo Daro, Sardar  Various heritage places of interest and hotels
Gabbar Singh, and Raees.  Little Rann of Kutch, Great Rann of Kutch,
 Recently, Phantom Films announced its Bhuj, Gondal and Mandvi are cinematically
foray into regional language films unexplored and hence the novelty factor
through its tie-up with Ahmedabad-based  Government has eased up licenses unlike
Cineman Productions Ltd. As part of the other states
tie-up with Phantom Films, Cineman  Improved infrastructure
Productions will produce three Gujarati  Gujarat Tourism campaign featuring Amitabh
movies in the year. Bachchan has created a lot of buzz

Some Locations for Film Shooting in Gujarat


Saputara Polo Mandvi Gopnath
Forests beach
Mountains/
sea/river sites

Laxmi Vijay Balaram Khirasar


Vilas Vilas Palace a Palace
Palaces Palace Palace

Great Little
Rann of Rann of
Deserts Kutch Kutch

Champa Junaga
ner dh
Archaeologic
al Sites

Somnath Dwarka Ambaji


Religious
sites

Page 11
Project Information

Development of Film City featuring post-production facilities

 The project involves development of a Film City, providing


production and post production services to local and foreign film
makers, an amusement park with attractions/rides/shows for kids,
as well as other recreation activities for all age groups.
Project brief  The project also involves development of peripheral infrastructure
such as hotels, food & beverage establishments and retail areas
including merchandise stalls to diversify the revenue composition.
Longer stays and enhanced customer experience contribute
towards increased revenues for the Film City.

 The target market for Film City are the domestic and foreign
tourists. The major subsections are foreigners, NRG/NRI, middle-
upper class domestic tourists and week end tourists from the city.
Target market
 Due to large number of local/weekend tourist, this demand is
generally found to be high during weekends, festivals and public
holidays.

 Film City would be situated in the periphery of urban areas -


Project location/
Ahmedabad/ Surat on a plot measuring 300 - 400 acres.
capacity/size
 Support crowd capacity of around 1,500 – 2,000 people/day.

Page 12
Project Information

Tourist flow across Ahmedabad and Surat

Total Tourists (in lakhs)

Ahmedabad Surat

257 52
CAGR: CAGR:
17.5% 10.2%
32
115 22
60 13
27

FY11 FY16 FY20E FY25E FY11 FY16 FY20E FY25E

Source: Tourist Flow Information System- Annual Report 2015-16

Tourist Purpose 2015 -16 (in %)

Ahmedabad Surat

Total: 60.2 lakhs Total: 21.6 lakhs

1% 3% 1% 3%
2% 4%

94% 92%

Business Leisure Spiritual Others

Source: Tourist Flow Information System- Annual Report 2015-16

Page 13
Project Information

Project components – Film City

Post-production
Production services services
 Locations  Screen Rooms
 Lighting  Off-line and on-line editing
 Grip Equipment  Still Imaging: feature production unit
 Camera stills, raw file processing and proofs
 Production Crew  Editorial: visual effects, versioning,
transcoding
 Accommodation
 Quality Control
 Craft Services
 Video Duplication
 Transport
 Encoding & Distribution: MPEG, AVI
 Set Design &
 Audio
Construction
 Recording/Mixing/Re-recording
 Props & Studio
Costumes
 ADR / Post-production Studios
 Support
 Optical Transfer Facility
Facilities
 Sound Effects Studio
Infrastructure
Facilities
 Custom-designed set locations such as airport
Artificial
set, rural and urban railway station, medieval
sets
court halls, administrative building set, a college
façade, a court façade, a police façade and
municipality front, caves, temples, dense forests,
hills, dams, fountains, artificially created water
bodies, paddy fields, Helipads, rail-tracks, straight
and serpentile roads, landscaped gardens

 Zones for shooting television programmes and


Shooting reality shows. Special tours and mock shooting
zones sessions would be conducted demonstrating how
films are made with modern technology

 Backlots that can accommodate massive


standing sets. These sets are changed according
Backlots
to the need of the script and the demand of the
film maker.

Page 14
Project Outline

Project components – Film City

 A grid for water and power, CCTV, wifi, drainage, water harvesting,
drinking water, Waste management systems, micro irrigation
system network, Solar lighting etc.
 Other infrastructure including toilet blocks, Internet Cafe, Gujarat
Supporting Tourism help desk; Tourist facilitation Center, Information Center,
Facilities* Interpretation center; food counters, caravan bays
 State of art entry, infrastructure for movement of all age of people,
help centres, medical help centres, relaxing places
 Parking lot for minimum 500 cars, 200 bikes and 10-15 buses

 A clear green space for children for featuring basic rides/games/


shows like Helicopter Height, Bumper car, Top spin, Carousel etc.
 A place of leisure/recreation to the visitors, featuring lush gardens,
new/latest fountains, iconic trees, shrubs, miniatures,
statues/sculptures etc.
 3D/4D screens for visitors to experience the audio visual illusions
of the reel world by being a part of special effects, dubbing and
editing through chromo screens.
 Theatres for conducting special events during festivals
Tourism
 Vintage tour buses to see all the sets and shoot locations
Infrastructure
scattered throughout Film City
Facilities
 Golf cars to travel within the complex
 A hotel/resort located inside the Film City
 Shopping, dining, and entertainment district with food courts, and
shopping avenues selling theme-based merchandise
 Guided tour including a four- to five-hour tour; a Film city walk-
through and a visit to the Bollywood Museum, cafe and costume
gallery; a behind-the-scenes look at how special effects are
created; and live filming, welcome drink; a history of Bollywood;
visits to sets and locations around the complex; and live filming

*The State Government can help in building infrastructure included under supporting facilities

Page 15
Project Information

Infrastructure availability/ connectivity

Logistics & Connectivity

Ahmedabad Rail Surat


 Ahmedabad is one of the most important
railway stations in the state.  Surat is well connected with Valsad, Vapi
and Mumbai towards its south and with
 As of July 2015, an investment of USD16.5b
Bharuch, Vadodara and Ahmedabad in the
for construction of bullet train between
north.
Mumbai and Ahmedabad has been made
 Almost all the talukas of Surat are well
 The Government also plans to invest USD connected with the rail network.
101.36 million for construction of the initial
phase of Ahmedabad Metro Rail Project.
Air
 Sardar Vallabhbhai Patel International
 Surat has a domestic airport which is well
Airport located in Ahmedabad provides
connected to different metros. It has daily
domestic and international flights
flights to Delhi, Jaipur, and Ahmedabad
connectivity within India and globally.
Road

 Ahmedabad is well connected to cities  Surat is well connected to various locations


across states. As of October 2015, in through national and state highways. NH 8
Ahmedabad, 88 km of BRTS Corridor was connects Surat with Mumbai (307 km)
planned. As of November, 2015, corridor  Surat Municipal Corporation proposes to
length of 45 km is operational and supports introduce 600 new buses to provide last mile
a daily ridership of 125,000 people. connectivity to people living in the city.
Port
 Ahmedabad is connected to several  Magdalla & Hazira Ports in Surat have good
leading sea ports such as Dahej, Kandala, rail and road connectivity. Magdalla port is 2
Mundra and Nhava Sheva sea port km away from the state highway and 15 km
 Most of the sea ports are within 300 km away from NH-8
from Ahmedabad

Utilities

Water Power

 Gujarat has successfully interlinked 27


rivers across the State and has in place a  The state is self-sufficient in power with
state-wide water grid across 120,000 km its present generating capacity of
enhancing the quality of life and growth 23,973 MW (including about 4,385 MW
prospects of the state of renewable energy),

Page 16
Project Information

Estimated manpower requirement*

Operations** 250 - 300 Persons

Hotel 160 Persons per 100-room 3-5 star hotel

Restaurant 25 Persons per 100 sitting or 25 Tables

*The manpower requirement has been estimated using the standard GITCO analysis done as part of Manpower and
Skill Gap Assessment for Tourism Sector in Gujarat (GITCO) report
**Operations includes – Upgradation and maintenance of stages/sets/backlots, Ride Operations, Shopping Center
Operations, Security, Office/Guest Relations, Housekeeping, Admin/Accounts, Amusement Park Maintenance,
Purchase/Store, Sales & Marketing, Other Services (Laundry etc.)

Leading players and possible collaboration opportunities


Players Providing Production/Post-production Equipment/Facilities

• Yash Raj Film Studios • Reliance MediaWorks

• Accord Equips • India Film Services

• Tata Elxsi • Cineom Broadcast India Ltd.

• Flamingo Films • Cine Dreams

Film City Operators


Company/Owner Operates Location/region

Government of Maharashtra • Film City • Goregaon, Mumbai

Ramoji Rao, Founder, Ramoji Group • Ramoji Film City • Hyderabad, Telangana

• Chandrakona, West Midnapore,


Prayag Group • Prayag Film City
165 km from Kolkata

Sandeep Marwah, Founder • Noida Film City • Noida, Uttar Pradesh

Government of Tamil Nadu • MGR Film City • Taramani, Chennai

Ramdev Group • Ramdev Film City • Thane, Maharashtra

Page 17
Project Financials

Estimated project cost


The estimated project cost has been calculated based on capital requirement/investment of a
typical Film City with production and post production facilities, hotels and an amusement park with
basic rides for children. However, it may vary by individual project.

Project cost and means of finance

Cost parameters Total cost (INR million)

Land and site development 1,028.13

Machineries/equipment/technology 2,078.13

Vehicles 43.75

Office equipment 54.69

Furniture & fixtures 109.38

Preliminary & pre-operative expenses 19.69

Provision for contingencies 166.25

Total capital cost of project 3,500.00

 Entry fees: Single ticket entry ranging between INR1000 – INR1500,


inclusive of guided Film City tour
Sources of  Hotel: Film City operator can give hotel on lease
revenue
 Restaurant: Can contract with popular food vendors
 Merchandise: Can contract with leading apparel/merchandise brands

 Setting up Film City requires huge investment, followed by regular


investment in upgradation and maintenance of stages/back-lots/sets
Pay back period as well as of rides and attractions to sustain footfall growth.
 Pay-back period is generally around 7-8 years, and acts as an entry
barrier to new operators.

Page 18
Project Structure

Project structure & implementation model

The Film City project shall be developed on the following models:


Build Operate and Transfer (BOT) – where land is owned by State Government
Direct private sector investment – where land belongs to private developer

The implementation of PPP projects would be in coordination with GIDB and as per the government
resolutions issued from time to time for tourism projects, which would be applicable to both
Greenfield and Brownfield projects. GUJTOP will be suitably assisting the State Government as per
the mandate given to it.

Following is a schematic diagram showing possible development model through PPP

Tourism Corporation Project consultant


of Gujarat Limited

The consultant undertakes


Government selects the private techno-economic feasibility
player through competitive study and master plan
bidding process and enters into preparation; assists with bid
an agreement to form a Special process management and
Purpose Vehicle (SPV)
SPV partner selection process;
and acts as a project
management consultant
during the implementation
period until one year of
Private investor
(project developer) commercial operations

The developer will create suitable facilities at


the site mentioned considering site specific
environmental and relevant factors on
Design, Engineer, Procure, Construct,
Operate, Maintain and Transfer concession
format

Page 19
Approvals and
Incentives
Approvals required

 Registration of business organization with Registrar of Partnership Firms, Government of


Gujarat for partnership firms and Registrar of Companies, Government of India (office located
in Ahmedabad) for corporations
 Local body clearances
 Acquisition of land from concerned office /owner
 No objection certificate from Gujarat Pollution Control Board
 Environmental clearance from Ministry of Environment and Forest and Government of Gujarat
(State Impact Assessment Committee)
 Arrangement of power with zonal distribution company
 Arrangement of water with concerned municipal corporations
 Any other clearances required

Incentives from Government of Gujarat

Government of Gujarat has granted Industry status to Tourism sector thereby providing a great
boost to the industry. The incentives under Tourism Policy for the State of Gujarat (2015-2020)
shall be applicable to the eligible tourism units as mentioned in the next sections.

Capital Subsidy to the Eligible Tourism Units


Eligible Capital Investment (excluding land cost) Admissible Maximum limit
subsidy

Investment upto INR500 million 15% INR75 million


Investment above INR500 million 15% INR100 million
Tented accommodation (with minimum investment of
20% INR1.5 million
INR2 million)

Equipment worth INR10 million and above for adventure


10% INR5 million
& water sports

Additional Capital Subsidy of 5% for New Tourism Units


 Within the Corporation limits of Gandhinagar and falling within the radius of 20 kms.

 Owned and managed by women entrepreneurs (with minimum equity participation of 51% in

the entity)
 SC/ST categories to an additional 5% subsidy over and above the ‘Admissible Subsidy’.

Page 20
Approvals and
Incentives
Interest subsidy to the eligible tourism units
 @5% of the loan amount with maximum amount of INR2.5 million per annum for a period of
five years in Municipal Corporation areas for eligible tourism units
 @7% of the loan amount with maximum amount of INR3.0 million per annum for a period of
five years in the areas other than mentioned above.

Other Exemptions
 Luxury Tax - 5 years from the date of commencement of commercial operation
 Entertainment Tax - 5 years from the date of commencement of commercial operation
 Electricity Duty - 5 years from the date of commencement of commercial operation for New
Tourism Units only.
 100% reimbursement of stamp duty and registration fee on sale/lease/transfer of land for the
first transaction only.

Support for Sustainable Tourism


 Assistance to eligible tourism units up to 75% of the cost of carrying out Energy Audit by a
recognized institution/consultant, Water Harvesting / Conservation and Environment-friendly
practices like Green Buildings, Solar and other Renewable Energy measures

Special Package for Mega Tourism Units


The State Government shall duly promote and facilitate Mega Tourism Projects that have a large
multiplier effect on the economy, leading to employment generation and inclusive growth in the
State. Any type of Mega Tourism Units like Film City, theme parks, amusement parks, water
parks, etc. meeting the qualifying criteria of Mega Tourism Units will be eligible.
Following incentives would be offered to eligible Mega Tourism Units:
 100% reimbursement of stamp duty and registration fee on sale/lease/transfer of land for the
first transaction only. Reimbursement of stamp duty and registration fee would be done after
the commencement of commercial operations.
 Capital subsidy of 15% of eligible capital investment (excluding the cost of the land) subject to
a ceiling of INR200 million.
 Exemption from luxury and entertainment tax for a period of seven years from the date of
commencement of commercial operations.
 Exemption in electricity duty would be for a period of five years from the date of
commencement of commercial operations.
 Mega tourism units shall not be entitled to any interest subsidy.

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Tourism Corporation of Gujarat Limited
http://www.gujarattourism.com/

Department of Tourism, Gujarat


http://www.gujarattourism.com/

Industries and Mines Department, Gujarat


www.imd-gujarat.gov.in/

iNDEXTb - Industrial Extension Bureau


www.indextb.com

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Tourism Corporation of Gujarat Ltd,


H. K. House, Opp: Bata Showroom,
Ashram Road, Ahmedabad,
Tel: +79 26578044/46/26589172
Fax: +79 26582183
E-mail: tibahd@gujarattourism.com