The state Cabinet has approved the Land Lease Policy-2024 of Uttar Pradesh Tourism to promote tourism in the state.
The Tourism Department has prepared this policy for the convenience of investors, in which a list of land can be made and identified as a land bank and can be leased for 30-30 years and can be extended for a maximum of 90 years.
This policy enables the Uttar Pradesh Government to lease land for the advancement of tourism within the state and entertain proposals from investors for development under the PPP mode.
Tourism and Culture Minister Jaiveer Singh said here on Tuesday that the government is making every possible effort to help investors so that tourism can be promoted in the state. The latest example of this is the land lease policy of Uttar Pradesh Tourism.
Singh stated that the goal of Uttar Pradesh’s Tourism Policy-2022 is to elevate tourism and position the state’s tourism industry as the preferred tourism destination.
As evidenced by the interest generated during the Global Investors Summit 2023, the tourism policy has attracted investment proposals totaling approximately Rs 1.5 lakh crore in the tourism sector. Among these, 643 proposals have specifically requested land allocation on lease from investors.
Singh stated that the department will identify districts with suitable tourist land and compile a list for leasing purposes, designating it as the land bank of the tourism department.
Small plots will be allocated on an “as is where is” basis. A detailed layout will be prepared based on proposals received for allotment as unit parcels on larger plots of land. Investors will be responsible for designing, financing, and developing tourism facilities on the allotted land plot.
The Tourism Minister said that infrastructure development costs around the site will be covered by the relevant department from their budget wherever possible. If not provided in their budget, the Tourism Department will allocate funds after assessment.
Investors must prepare DPRs following the Tourism Department’s format. Technical evaluation will occur in the second phase by a committee led by the Principal Secretary of Tourism. Foreign investors can engage in joint ventures, subject to Indian Government approval.
If one proposal is received for a plot, it may be approved directly; otherwise, an auction process will determine lease allocation, with the highest premium bidder securing the plot. Land premium equals the circle rate for single applicants and the highest auction price for multiple applicants.
Singh stated that the annual lease rent for the first two financial years will amount to one percent of the final land premium. From the third financial year onwards, the rent will increase by five percent annually.
Developers will have nine months to acquire the necessary approvals. The construction must be finished within 30 months of lease signing; failure to do so will result in automatic lease termination.