June 2014 \ Business & Investment \ Investment In Indian States
Special Focus: Rajasthan Tourism Is Key

Rajasthan is the state that symbolises royalty, gallantry, resplendence, festivals and the barren yet striking Thar Desert. Its culture, festivals, customs and even cuisines are deeply associated with the ancient Indian culture. Its diverse landscape attracts tourists from all over the world. Rajasthan constitutes 23 per cent of the NCR, second largest urban agglomeration in the world. Rajasthan houses 322 industrial areas comprising 4 agro parks, 3EPIPs and SEZs. The EPIP in Jaipur is the largest in North India while IT SEZ in the state capital is the largest in the country. With 252 mines currently in operation, Rajasthan accounts for the entire production of lead and zinc concentrates of India

Why Locate in Rajasthan
Rajasthan has a large number of heritage properties in various districts. The owners of these heritage properties have indicated their willingness to enter into contract with private parties.

Explore more business opportunities at rajasthantourism.gov.in

An arrangement wherein private heritage properties (forts, fortresses, palaces and havelis) can be taken up by investors in a joint venture or on management contract. The Government is in the process of identifying government properties of heritage value, which would be given out on lease arrangements.
* Rajasthan Tourism Units Policy 2007 is in place which provides various incentives to various units.
* A package of incentives is also available for new tourism units under the Rajasthan Investment Promotion Scheme 2010.
* Easy establishment of Tourist Units has launched an innovative scheme of Land Bank.
* Rajasthan is easily accessible to other states in India through air and rail. The two major tourist destinations in India, Delhi and Agra are in close proximity to the State.
* Delhi - 265 kms from Jaipur. Jaipur, Jodhpur and Udaipur are connected by daily service of Air, Train and Bus and motorable super highway.
* Agra - Daily train and bus service and a motorable super highway connect 240 kms to Jaipur.

Rajasthan Tourism Units Policy 2007
The policy, already in place, covers Hotels, as well as all other units such as Heritage Hotels, Camping Sites, Holiday Resorts, Health Spas, etc.
* The minimum and maximum area for land to be auctioned from the land bank has been prescribed. The minimum area in the 2007 policy is the maximum area in the policy of 2006.
* The cost of land has been differentiated with the budget and 4-star hotels base price fixed at less than 50 per cent of the commercial reserve price.
* Rule 8 of the Rajasthan Land Revenue Rules 2007 (conversion of agricultural land for non agricultural purpose in rural areas), a proviso has been added exempting from conversion charges all those desirous of establishing hotels or any other tourism unit on the land held by them.
* Regarding conversion of residential land and heritage properties into hotels and other tourism units, a proviso has been added to the Rajasthan Municipal Corporation Rules 2000 (land utilization conversion), where heritage property owners would not have to pay 40 per cent of residential reserve price for conversion of the property into a heritage hotel, with the rider that the property has been constructed prior to 1950 and should have a minimum of 10 rooms.
* In JDA and other Urban Areas, the existing FAR of 1.75 has been doubled in new developed and new township areas subject to the condition that the overall FAR of the Township shall not exceed 1 (one). Floor Area Ratio (FAR) of existing hotels should be increased from 1.75 to 2, to allow construction of an additional floor. However, the land coverage area shall be similar to previous permissible area. The additional floor would only be used for rooms.