Centre Approves Interest-Free Loans for Tourism Development

On 28th November, 2024, the Union Government sanctioned Rs. 3,295 crore in interest-free loans to 23 States for developing 40 tourism projects and enhancing lesser-known destinations under the Special Assistance to States for Capital Investment (SASCI) scheme.

Key Points

Funds for Tourism Infrastructure Development: The loans, cleared by the Union Finance Ministry, aim to develop iconic tourist centres and lesser-known destinations across 23 States, promoting sustainable tourism and creating employment opportunities.
Focus on Lesser-Known Destinations: States have been encouraged to enhance sites like Bateshwar (Uttar Pradesh), Ponda (Goa), Gandikota (Andhra Pradesh), and Porbandar (Gujarat) to ease overcrowding at popular destinations.
Operational Guidelines and Project Selection: The Ministry of Tourism shortlisted 40 projects from 87 proposals worth over ₹8,000 crore after consultations with States, allocating ₹3,295.76 crore for implementation. West Bengal did not submit any proposals.
Land and Project Execution by States: States will provide land, execute projects, and oversee post-completion management. The funds will be released in two instalments, with the Tourism Ministry monitoring progress.
Two-Year Timeline for Completion: The States are expected to complete the approved projects within two years to ensure timely development and operationalisation.
Training and Employment Opportunities: The Tourism Ministry has signed MoUs with global hospitality chains to train Indian youth in tourism, with job absorption by the partnering hotel chains after training.