News: India to encourage FDI in tourism

(PTI 05/07/2006) Kolkata - The Centre said it would encourage FDI in public-private projects in the tourism sector to develop infrastructure out of abandoned tea estate houses, defunct forest and PWD guest houses.

Union Tourism and Culture Minister Ambika Soni said that new entrepreneurship in the PPP model would be encouraged to promote tea-tourism in West Bengal and Assam.

"It could be on an equity or revenue sharing basis. We are looking at creating homesteads out of these defunct premises. We also plan to provide ten per cent subsidy to motels and three-star category hotels built up on the PPP model," Soni said.

The Union Minister, who has been touring the various tourism circuits after she took charge four months back, said she would meet West Bengal Chief Minister Buddhadev Bhattacharjee on Wednesday to discuss tea-tourism projects in the state.

The Centre has already sanctioned Rs 388.98 lakhs for tea-tourism during 2006-07, but the Chief minister had asked for a Rs 8 crore package.

"I should be able to assure this sum for tea-tourism here," Soni said.