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Infrastructure Status For Convention Centres

Posted on May 21, 2021 by admin1  61

In News

Recently, The Ministry of Finance granted ‘Infrastructure’ status for exhibition and convention centres to ease bank financing for such projects.

Objectives and Need

  • India doesn’t have large convention centres or single halls with capacities to hold 7,000 to 10,000 people, unlike countries like Thailand that is a major global MICE destination
    • Becoming a MICE (Meetings, Incentives, Conferences and Exhibitions) destination can generate significant revenue with several global companies active in India but it will take time to become a preferred destination.
      • MICE  is essentially a version of business tourism that draws domestic and international tourists to a destination.

‘Exhibition-cum-Convention Centre

  • ‘Exhibition-cum-Convention Centre is included in the Harmonised Master List of Infrastructure sub-sectors by insertion of a new item in the category of Social and Commercial Infrastructure. 
  • However, the benefits available as ‘infrastructure’ projects would only be available for projects with a minimum built-up floor area of 1,00,000 square metres of exclusive exhibition space or convention space or both combined.
    • This includes primary facilities such as exhibition centres, convention halls, auditoriums, plenary halls, business centres, meeting halls etc.
  • As of now, the major projects underway in the sector are backed by the government – the International Exhibition-cum-Convention Centres at Dwarka as well as Pragati Maidan in the capital.

Significance

  • Inclusion in the list implies access to concessional funds, promotion of projects and continuity of construction for the specified sub-sectors.
  • The infrastructure tag no longer involves significant tax breaks but would help such projects get easier financing from banks.

Harmonised Master List 

  • The Harmonized Master list approved by the cabinet committee on infrastructure has five main sectors and 29 infra subsectors.
  • The five sectors include transport, energy, water sanitation, communication and social and commercial infrastructure.
  • The infra tag allows certain benefits including access to easier borrowings overseas, the ability to raise funds through tax-free bonds, tax concessions, and access to dedicated lenders such as IIFCL, and the debt funds.
  • In 2020, the government added affordable rental housing projects to the list of sectors recognised as infrastructure.

Source:TH


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