Bhubaneswar, March 15: The Odisha government has formulated a new policy with incentives for various tourism activities, including health spa, heritage hotels and adventure sports, in the state.

The state cabinet approved the draft policy last night and placed it in the Assembly, which is in session. The last tourism policy was announced in 1997.

For extending the incentives under the new tourism policy, the state has been divided into three zones. While Bhubaneswar has been classified as Zone-A, the undivided Koraput-Balangir-Kalahandi (KBK) districts, Kandhamal and Gajapati districts have been bracketed in Zone-C. The rest of the state falls in the Zone-B.

Establishment of any tourism project in Zone-C will get a capital investment subsidy of 30 per cent of the project cost, maximum up to Rs 30 lakh. Those located in Zone-A and Zone-B will be entitled to 20 per cent capital investment subsidy (up to 20 lakh) and 25 per cent (up to Rs 25 lakh), respectively.

Besides, tourism projects in the private sector will also get an interest subsidy at 3 per cent up to 5 years for Zone–A, 5 per cent up to 5 years for Zone-B and 5 per cent up to 7 years for Zone-C. A maximum subsidy of Rs 1 crore will be available for all the three zones.

Land will be allotted to the tourism projects at concession according to the industrial policy. They will be allowed 50 per cent concession on stamp duty for purchase of land.

Tourism projects will also get reimbursement of 30 per cent of net value added tax per annum for five years (maximum up to Rs 10 lakh). Entertainment tax will be reimbursed for five years for new multiplex, public aquarium, aqua parks, amusement and theme parks.

The major non-fiscal incentives include land bank, single window clearance and institutional mechanism for tourism development.

Star hotels, heritage hotels, health resorts and spa, amusement parks, aquarium, aqua park, adventure, beach and water sports, golf courses, aerial ropeways, convention centres, multiplexes, art and craft villages, cruise and house boats, eco-tourism projects, wildlife safari and medical tourism projects will be eligible for the incentives announced in the policy.

The cabinet also gave its nod to the proposals for relaxing norms for the Biju Saharanchal Vidyutkaran Yojana. Under the scheme, habitations having less than 100 population will be given power connection.

The cabinet also decided to provide Rs 1 crore annual grant to the Odisha Advocates Welfare Fund. The lawyers across the state had been demanding the government grant and threatened to intensify agitation. A lawyer serving for above five years and up to 30 years will get financial help between 45,000 and Rs 2.7 lakh from the fund.

Small units, including cottage industries, brick kilns and roadside dhabas, will be exempted from the licence fee using minerals. Others will have to pay licence fee of Rs 25,000.