PARLIAMENT OF INDIA RAJYA SABHA 162
DEPARTMENT - RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE
ONE HUNDRED SIXTY SECOND REPORT ON ACTION TAKEN BY THE GOVERNMENT ON THE RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE CONTAINED IN ITS ONE HUNDRED FIFTY FOURTH REPORT ON DEMANDS FOR GRANTS (2010-2011) OF THE MINISTRY OF TOURISM
(PRESENTED TO THE RAJYA SABHA ON 04.03.2011) (LAID ON THE TABLE OF THE LOK SABHA ON 04.03.2011)
RAJYA SABHA SECRETARIAT NEW DELHI MARCH, 2011/PHALGUNA, 1932 (SAKA)
Website:http://rajyasabha.nic.in E-mail:[email protected]
PARLIAMENT OF INDIA RAJYA SABHA
DEPARTMENT - RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE
ONE HUNDRED SIXTY SECOND REPORT ON ACTION TAKEN BY THE GOVERNMENT ON THE RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE CONTAINED IN ITS ONE HUNDRED FIFTY FOURTH REPORT ON DEMANDS FOR GRANTS (2010-2011) OF THE MINISTRY OF TOURISM
(PRESENTED TO THE RAJYA SABHA ON 04.03.2011) (LAID ON THE TABLE OF THE LOK SABHA ON 04.03.2011)
RAJYA SABHA SECRETARIAT NEW DELHI MARCH, 2011/PHALGUNA, 1932 (SAKA)
CONTENTS
PAGES
1. COMPOSITION OF THE COMMITTEE ...... (i)-(ii)
2. INTRODUCTION ...... (iii)
3. REPORT OF THE COMMITTEE ...... 1-19
4. OBSERVATIONS /C ONCLUSIONS /R ECOMMENDATIONS –– AT A GLANCE ...... 20-22
5. MINUTES ...... 23-26
COMPOSITION OF THE DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE (2010-2011)
1. Shri Sitaram Yechury ------Chairman RAJYA SABHA 2. Shri Ramdas Agarwal 3. Shri Shadi Lal Batra 4. Shri Narendra Kashyap 5. Shri Pyarimohan Mohapatra 6. Shri Syed Azeez Pasha 7. Shri Thomas Sangma 8. Shri Satish Sharma 9. Prof. Saif-ud-Din Soz 10. Shri Vikram Verma LOK SABHA 11. Yogi Aditya Nath 12. Shri Avtar Singh Bhadana 13. Shri V. Kishore Chandra S. Deo 14. Shrimati Bhavana Gawali Patil 15. Dr. Mahesh Joshi 16. Shri P. Karunakaran 17. Shri Jose K. Mani 18. Shrimati Ranee Narah 19. Shri Rajaram Pal 20. Shri Bal Kumar Patel 21. Shri Nama Nageswara Rao 22. Shri Sharief-ud-din Shariq 23. Shri Madan Lal Sharma 24. Shri Dushyant Singh 25. Shri Jitendra Singh 26. Shri Rakesh Singh 27. Shri Shatrughan Sinha 28. Shri K. Sugumar 29. Shri Kabir Suman 30. Shri Anurag Singh Thakur 31. Shri K.C. Venugopal*
SECRETARIAT Shri N.K. Singh, Joint Secretary Shri Jagdish Kumar, Director Shri Swarabji B., Joint Director Shrimati Nidhi Chaturvedi, Assistant Director
INTRODUCTION
I, the Chairman, Department-related Parliamentary Standing Committee on Transport, Tourism and Culture, having been authorised by the Committee to present on its behalf, do hereby present this One Hundred Sixty Second Report on “Action Taken by the Government on the Recommendations/Observations of the Committee contained in its One Hundred Fifty Fourth Report on Demands for Grants (2010-2011) of the Ministry of Tourism”.
2. The One Hundred Fifty Fourth Report of the Department-related Parliamentary Standing Committee on Transport, Tourism and Culture was presented to the Parliament on the 20th April, 2010.
3. The Action Taken Replies on the recommendations of the Committee contained on its One Hundred Fifty Fourth Report were received from the Ministry of Tourism on the 1 August, 2010.
4. The Committee considered and adopted the Report at its meeting held on the 20th December, 2010.
SITARAM YECHURY NEW DELHI ; Chairman, December 20, 2010 Department-related Parliamentary Standing Agrahayana 29 , 1932 (Saka) Committee on Transport, Tourism and Culture.
REPORT
1. The Report of the Committee deals with the Action Taken by the Government on the observations/recommendations as contained in its One-Hundred and Fifty-fourth Report on Demands for Grants 2010-11 of the Ministry of Tourism which was presented to both the Houses of Parliament on 20th April, 2010. 2. Action Taken Replies have been received from the Government on the 1st August, 2010 in respect of all the observations/recommendations contained in the Report, which have been categorized as follows:-
(i) Recommendations/observations, which have been accepted by the Ministry: Para Nos.10,16,29,30,37,54 and 66 Total- 7
(ii) Recommendations/observations which the Committee does not desire to pursue in view of the Ministry replies: Para Nos. 27,33,35,52,65,68,71,83,84,88,103 and 104 Total-12 (iii) Recommendations/observations in respect of which replies of the Ministry have not been accepted by the Committee: Para Nos. 17, 20 and 98 Total-3 (iv) Recommendations/observations in respect of which final replies of the Ministry are still awaited: Para Nos. 22,25,43,53,63,72,91,95 and 106 Total-9 3. The Committee desires that final replies in respect of those recommendations/observations which have been categorized as interim replies by the Committee should be furnished to it at the earliest. 4. On scrutiny of the Action Taken Replies, the Committee has made observations on each item of Action taken/proposed to be taken by the concerned Ministries. The recommendations of the Committee contained in the One Hundred and Fifty-fourth Report, action taken thereon by the Ministry and recommendations/observations of the Committee on each item of action taken has been given in the succeeding paragraphs.
RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 5. The Committee notes that during the year 2009-10, the allocation was reduced to Rs.950.00 crore at RE stage, out of which, an amount of Rs.776.16 crore is likely to be utilized till Feb. 2010. Thus, 19% of allocation is likely to be utilized in just one month. The Committee does not approve the practice of last minute spending at the fag end of the financial year. The Committee in its earlier Reports, has conveyed this feeling to the Ministries concerned. The Ministry should follow the exiting norms strictly to ensure that the funds are utilized, as far as possible, evenly throughout the year. The Committee also does not find any reason for reducing the allocation at RE stage. Tourism is the largest service industry with a contribution of 6.23% of the GDP and 8.78% of the total employment in India. Since Tourism projects are implemented by the States, there is need to sensitize them to ensure optimum utilization of funds and issuing utilization certificate on time. The Ministry should make concerted efforts and evolve a coordination mechanism with States. (Recommendation at para 10 of 154th Report)
Reply of the Government 6. The recommendation has been noted.
FURTHER RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 7. The Committee notes the reply.
RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 8. The Committee, however, finds that in the case of utilization of fund for product/infrastructure development for circuit during 2007-08, 2008-09 and 2009-10, expenditure has been more than what was allocated in the budget. The Committee recommends that if the schemes are chalked out well in time by the Ministry, they can approach the Planning Commission/Ministry of Finance for allocation of more funds at BE stage itself. (Para 16 ibid ) Reply of the Government 9. The recommendation has been noted.
FURTHER RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 10. The Committee notes the reply and hopes that the Ministry will be careful while formulating their schemes to ensure that correct projection of required fund are made at BE stage itself. RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 11. The Committee is of the view that the Ministry should make all out efforts for the development of a particular circuit which is approved for implementation. Moreover various States should coordinate and develop inter-state circuits. Southern and central circuits need to be developed with more emphasis on travel connectivity. (Para 17 ibid ) Reply of the Government 12. The Ministry is making concerted efforts to develop the identified circuits including inter-State circuits with the help of concerned States Governments. Efforts are also being made to improve the connectivity of tourist destinations and circuits in coordination with Ministries of Civil Aviation, Railways and Road transports and Highways.
FURTHER RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 13. The Committee would likes to be informed about the circuits particularly inter-State circuits identified for development. RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 14. The Committee finds no justification for making provision of plan outlay in the Budget under the Head-Creation of Land Bank for Hotels when the plan allocation remained unutilized since the inception of the scheme. The Committee, therefore, recommends the scheme may be revised and modified with view to ensure that development of accommodation for tourists is not affected. (Para 20 ibid )
Reply of the Government
15. The recommendation has been noted.
FURTHER RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE
16. The Committee is not satisfied with the reply and would like to know about the action taken or proposed to be taken on the recommendations of the Committee to revise and modify the Scheme ‘Creation of Land Bank for Hotels’.
RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE
17. The Committee came to know that ITDC is doing the illumination work in some of major monuments in Delhi. Further, ITDC also host light & sound show in some of the monuments which is being appreciated. Particularly Delhi will be hosting XIX Commonwealth Games this year the light and Sound show can be used to attract more tourist and to acquaint them with the history as well as majesty of our famous monuments. The Committee, therefore, recommends that the Ministry should ensure that this year sufficient funds are allocated to ITDC for this job. (Para 22 ibid ) Reply of the Government
18. The Ministry of Tourism sanctioned an amount of Rs.23.75 crore to ITDC for illumination of 13 numbers of monuments in Delhi. The work is being completed in a phased manner. Illumination work of 04 monuments in Phase-I viz. (i) Sher Shah Gate (ii) Sub Burz (iii) Purana Quila and (iv) Safdarjung Tomb has been completed. Tenders for illumination works of remaining 09 monuments have been floated.
19. The Ministry of Tourism has further sanctioned funds amounting to Rs.3.75 crore in the current financial year for illumination of 03 more monuments i.e. Jantar Mantar Complex, Delhi Gate and Wazirabad Bridge Tomb and Mosque to ITDC.
20. With respect to Sound and Light Shows, ITDC is enagaged in implementation of new Sound and Light Show at Purana Quila and upgradation of existing Sound & Light Show at Red Fort.
FURTHER RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE
21. The Committee is concerned over the fact that many of the projects undertaken by the ITDC were lagging behind the schedule. The Committee may be apprised of the status of illumination of the monuments and the number of visitors during Commonwealth Games 2010.
RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE
22. The Committee notes the projects and funds sanctioned to various Sates. However, the Committee is not aware of the targets fixed for completion of these projects. It has also come to the notice of the Committee that in some cases projects received from the State Government are not processed/sanctioned in time which results in delay and non-utilization of funds. The Committee, therefore, recommended that the progress of these projects need to be monitored regularly to ensure that there is no delay and cost overrun in the projects. (Para 25 ibid )
Reply of the Government 23. The Ministry is making all out efforts to strengthen the monitoring mechanism. This issue is also discussed in the Regional Conferences of Tourism Ministers. The objective is to expedite the implementation of projects sanctioned by the Ministry in various States and Union Territories.
FURTHER RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 24. The Committee reiterates its concern in this regard and desires to know the major decisions taken in the light of conclusion arrived at the Conference for strengthening the monitoring mechanism. It would also like to know the status of projects in various States/U.Ts.
RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 25. The way-side facilities may appear to be insignificant things in comparison to other tourism infrastructure, these are, however, very important from the tourist’s points of view. The Committee desires that this scheme needs to be widely publicized and the States be impressed upon to take benefit from this. In fact, the Ministry of Tourism should set target for each State and implementation of the scheme should be monitored in a time-bound manner. (Para 27 ibid ) Reply of the Government 26. The Ministry is treating construction of wayside amenities on a priority basis. State Governments are encouraged to send more proposals for setting up wayside amenities on roads leading to important tourist destinations. 27. The Ministry is also in regular contact with the Ministry of Road Transport and Highways for setting up wayside amenities on land of National Highways Authority of India in public private partnership.
FURTHER RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 28. The Committee notes the reply and hopes that wayside amenities would be developed in a time bound manner. RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 29. On being asked about the region-wise and State-wise plans for tourism infrastructure development in the country, the Ministry of Tourism replied that there was no such plan with them. The Committee, however, recommends that Ministry may consider evolving the approach for development of region/state-wise tourism infrastructure development in order to promote the domestic tourism more vigorously which has a great potential. The Committee is of the view that such approach may generate interest among the local people and Government of the State concerned which can ensure the speedy development and timely completion. (Para 29 ibid ) Reply of the Government 30. Development of tourist infrastructure is primarily undertaken by State Government/Union Territory Administrations. The Ministry sanctions projects on the basis of proposals received from them. However, the Regional Conferences of Tourism Ministers may be helpful in developing regional approach to tourism development.
FURTHER RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE
31. The Committee notes the reply. The Committee however hopes that, the Ministry will keep pursuing the matter with State Governments.
RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE
32. It appears that presently the infrastructure development is mainly focused on five star and such high cost accommodation which are out of common man’s access. So, the tax-holiday benefits and such concessions are ultimately not reaching to the majority. The Committee is of the view that Ministry of Tourism should concentrate on promoting accommodation for the domestic tourists who usually prefer affordable and safe accommodation rather than the costly star hotels. The Committee, therefore, recommends that budget hotels aimed at the domestic tourists should also be given priority by the Ministry of Tourism and accordingly all the promotional measures and tax benefits should also to be extended to the budget hotels and restaurants also. (Para 30 ibid )
Reply of the Government
33. The Ministry of Tourism (MOT) is making all efforts to address the shortage of budget accommodation in the country. Accordingly in order to encourage the growth of budget accommodation, MOT has been in regular touch with the State Governments/UT administrations and various Land Owing Agencies to create Land Banks for budget hotels, provide land on long lease, allocation of land on joint venture/revenue sharing basis and also to provide incentives and benefits to facilitate the growth of budget accommodation sector in the country.
34. Further, to encourage the growth of budget hotels, the Government had during the budget 2007-08, announced a Five Year Tax Holiday under Section 80-ID of the Income Tax Act to new hotels of two, three and four star category and Convention Centres coming up between 1.4.07 to 31.03.2010 in the National Territory Region of Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar (NOIDA) and Ghaziabad which during the budget of 2010-11 been extended from 31.03.2010 to 31.07.2010.
35. To encourage the growth of budget hotels, a Five Year Tax Holiday was also announced during the budget 2008-09 for all hotels of 2,3 and 4 star category located in all UNESCO declared World Heritage sites (except Mumbai and Delhi). Recently, in the Union Budget 2010-11, the Government has also announced an investment linked deduction under Section 35 AD to the hotel sector allowing 100% deduction in respect of the whole of any expenditure of capital nature excluding (land, goodwill and financial instruments) incurred during the year for establishing new hotels of 2 star category and above, all over India.
36. With the objective to make available standardized budget accommodation in the National Capital territory of Delhi, the MOT has recently announced a scheme of Interest subsidy on loan taken by licensed/approved Guest Houses in Delhi for upgradation in view of the Commonwealth Games, Delhi -2010 under which as per the scheme, an interest subsidy @5% would be provided to the Guest Houses if the loan was sanctioned and first installment released by 31.07.2010 and all the works would be completed by 20.09.2010. Efforts have been made regularly by MOT to extend incentives to the hotel sector in order to encourage the growth of budget category accommodation in the country.
FURTHER RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 37. The Committee notes the reply and recommends that the thrust may be on increasing the budget accommodation hotels in the country.
RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE
38. The Committee notes that huge amount is pending with various State Governments and they are yet to complete the projects and submit the utilization certificates. The Committee recommends that the Ministry of Tourism should pursue with the State Government to identify the reasons for delay of each of the projects and if it is found that the project is not feasible due to one or the other reasons, alternate projects may be allowed for the States. The Committee also recommends that in future projects may be allowed only after getting all the necessary clearance from various agencies. (Para 33 ibid )
Reply of the Government 39. This matter is discussed in detail with the State Governments in review meetings/Prioritization meetings. The projects which are not taken up for implementation for a long period are dropped in consultation with them and the amount released for such projects are normally adjusted against other new or ongoing projects.
FURTHER RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE
40. The Committee notes the reply.
RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 41. The Committee also pointed out that in many cases the projects are approved without doing adequate home work and later on abandoned midway, because of functional and operational difficulties. The Committee noted that in certain cases even 80 percent of the total sanctioned amount was released to the project, but later on it was abandoned due to unknown reasons. This is because of poor planning and implementation methodology adopted by the ministry while sanctioning the projects. The Committee in this respect is of the view that before a project is approved by the ministry, they should ensure the feasibility of the project and get all the necessary clearances from other related agencies before releasing the money. (Para 34 ibid )
Reply of the Government 42. The Ministry now examines the proposals more thoroughly and projects are sanctioned only when necessary documents are provided by the State Governments/UT Administrations.
RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE 43. The Committee conveys its displeasure over the way the projects are sanctioned and implemented by the Ministry where there are lots of wastages of money and manpower. Land related issues and environmental clearances should be dealt with in order to ensure a smooth implementation and completion of the projects. (Para 35 ibid )
Reply of the Government 44. Implementation of projects is the responsibility of the concerned State Governments/UT administrations. However, they are impressed upon to send proposals only if land is available. Land availability certificate is therefore, obtained before sanctioning the projects.
FURTHER RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE
45. The Committee notes the reply given by the Ministry and desires that proper monitoring of the projects should be done.
RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE
46. The Committee is constrained to say that the work Ajanta-Ellora Phase-II which was started in 2003-04, is yet to be completed. It appears that the project progress has not been monitored properly and expected obstacle in its completion could not be identified. Now the project is scheduled to be completed by June 2010. The Committee recommends that the Ministry should coordinate with the Ministry of Culture for timely completion of its project. (Para 37 ibid )
Reply of the Government
47. Recommendation of the Committee are noted for compliance. Ministry of Tourism has been monitoring the Project in consultation with Archeological Survey of India, Maharashtra Tourism Development Corporation, Airport Authority of India and project consultants M/s Oriental consultants.
48. An agreement has been signed on 31st March, 2003 between. the President of India and JICA, for a total loan amount (all Categories) of Rs. 299.9 crore (6252 Millon Yen). The expenditure incurred till March, 2010 is Rs.22.00 Crore approx. (458.62 Million Yen). Most of the components included in the project have been completed. Some of the major pending work includes.