Govt To Set Up Holding Company To Fund Convention Centres

EH&C Staff - Mumbai

The Indian government is planning to set up a holding company to fund convention centres in the country and will set up two such venues ahead of the Commonwealth Games here in 2010.

The government plans are aimed at seeking a bigger share in the US$270 billion global market for convention centres.

"The government has decided to come forward with viability gap funding on the basis of the projection for each project," revealed the tourism secretary, A.K. Misra.

To increase India's share in the global market for convention planning and management, the government proposes to set up large state-of-the-art convention centres in Delhi, Mumbai, Bangalore and Hyderabad and medium-sized facilities in smaller cities like Panaji, Kolkata, Chennai and Jaipur among others.

"We are looking at public and private partnership in this endeavour and considering setting up a special purpose vehicle for providing the funding requirement," the official said.

Plans are afoot to set up two world class convention centres in the capital - one in the Commonwealth Games Village being set up in the city's eastern part and another in Dwarka near the international airport, tourism ministry officials said.

In a run up to the big sporting event, Misra said, plans are being finalised for creating more hospitality infrastructure in the capital.

"The Delhi Development Authority (DDA) has already identified 19 plots which are to be auctioned for setting up mostly five and three star hotels. They have also decided to allow large plots in residential areas for setting up guest houses," Misra said.

After the required amendments to the rules, the Delhi government is also mulling over allowing hotels to be set up around a four-km radius of the international airport to provide better facilities to foreign tourists, the official said.

To bridge the gap in affordable accommodation for budget tourists, Misra said, "We are preparing guidelines for registration of appropriate stay homes or paying accommodation in homes all over the country. Good affordable accommodation is more a problem in Delhi than in other metros."

The official told the media that the hotel industry is currently going through a boom period with several national and international chains planning projects in India.

Already around 50 hotels are in various stages of planning and execution in cities like Chennai, Hyderabad, Bangalore, Mumbai, Gurgaon and Noida.