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Govt forms company to promote tourism

Last Updated 25 February 2015, 17:50 IST

The State government has issued orders to incorporate Karnataka Tourism Infrastructure Limited (KTIL) for promoting participation of private sector in management and development of tourism facilities in the State. 

KTIL will be registered as a public limited company under the Companies Act, 2013 with the government equity of not more than 26 per cent and allowing the larger stake to private partners. For initial operations, the State government will be releasing Rs 6.5 crore followed by Rs three crore per annum for the next five years for project development activities. 

Officials in the Tourism department said that the KTIL would serve as a special purpose vehicle and  encourage private investment in improving infrastructure and facilities at tourist spots.  The projects will be developed on public-private partnership (PPP) model. Land would be leased to private developers.

The State government is keen on following the Kerala and Gujarat models of public-private participation in tourism.

In Kerala, the private sector is given freedom to run and manage tourist spots while the government plays a supporting role, officials said. The Tourism department has started identifying tourist spots, wherein the government has no funds to develop infrastructure. 

To start with, the department has started the bidding process for renovation of 18 tourism properties through PPP under Renovate, Operate, Maintain and Transfer (ROMT) framework for a period of 30 years.

These  include Mayura-brand hotels at Malaprabha in Belagavi district, Aihole in Bagalkote, Gokarna in Uttara Kannada, Somanathapur in Mysuru besides Yatri Nivas hotels at Shanthisagar in Davangere, Halebeedu in Hassan, Shikaripura in Shivamogga, Lakkundi in Gadag and Madhyaranga in Chamarajnagar district.

Development of dormitories at Melukote, Moodabidri and wayside facilities at Ganigapura in Kalaburagi, Tannikola in Belagavi, Telgi in Vijayapura, Shiradi in Hassan are also on the list.

Another such initiative taking shape is “Adopt a tourist destination” programme wherein the government will take the help of corporate sector to take measures to ensure cleanliness and development of tourist destinations. 

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(Published 25 February 2015, 17:50 IST)

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