Tourism ministry focuses on PPP model

Centre to extent financial support to states/UTs for production of publicity material in collaboration with private sector

GN Bureau | July 2, 2010



With a view to further promoting tourism under the Public-Private Partnership model, and to encourage production of adequate publicity material of international standards, for use in the domestic and international markets, the union ministry of tourism has formulated guidelines for extending financial support to state governments/union territories for production of publicity material in collaboration with private sector.

In case of the North East states including Sikkim, Jammu & Kashmir and the three newly formed states of Chhattisgarh, Jharkhand and Uttarakhand, the ministry of tourism will extend financial support upto 50 percent of the total cost, whereas the remaining 50 percent would be shared equally by the state governments/union territories and private stakeholders. In the case of the other states/union territories, the ministry of tourism will contribute 34 percent of the total cost or a maximum amount of Rs. 25.00 lakh, whichever is less, to the state governments and 34 percent of the total cost or a maximum amount of Rs. 15.00 lakh, whichever is less, to the union territories, for production of publicity material in each financial year. The balance 66 percent will be borne by the state governments and private stakeholders jointly, with a minimum share of 25 percent of the total cost being the state government/UT share.

The ministry of tourism has also revised its guidelines for grant of central financial assistance to state governments and union territory administrations for organising fairs / festivals and events such as seminars, conclaves, conventions etc. on tourism related themes. Hitherto the financial support extended was for a maximum of 3 fairs/festivals/events per year, can now be for a maximum of 6 fairs/ festivals/events during one financial year. In addition, 2 more fairs/events could be considered for States, on receipt of complete justification and based on merit of the case.

The maximum financial assistance to be provided to each state government during one financial year has been raised from Rs.25 lakh to Rs. 50.00 lakh. The financial ceiling for the union territories would be Rs. 30.00 Lakhs. The ceiling of financial assistance for each fair/festival/event has been raised from Rs.15.00 lakh to Rs. 25.00 lakh for states. The state government/ UT governments organizing the event would contribute at least 50 percent of the total expenditure involved on the fair/festival or event.

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