Gujarat Infrastructure Development Board has approved today, the model concession agreement for Tourism sector to be developed in the state on Public Private Partnership. The Minister of state Finance and Industries Shri Saurabhbhai Patel chaired the 57th Executive Committee Meeting of GIDB held in Gandhinagar.
The Chief Secretary Shri A. K. Jyoti, Tourism Secretary, Shri Vipul Mittra and other senior officers also attended the meeting.
This model agreement will facilitate the expeditious implementation of tourism projects on PPP format. Based on this model agreement, project specific agreements can be prepared by any Government or its instrumentality intending to develop tourism projects in the state. The agreement is developed in accordance to provisions of the Gujarat Infrastructure Development Act, 1999, and as amended by the Gujarat Infrastructure Development (Amendment) Act, 2006.
The Salient Features of the Concession Agreement include Competitive bidding process of selection, selected bidder/ the Concessionaire to be either a single entity or a group of entities (Consortium); initial concession period thirty-five (35) years and extendable on mutually agreed terms.
It also provides security to both the State Government and private entities against non-fulfilment of their respective obligations. In case where the Concession Agreement is not extended beyond the concession period, the Concessionaire shall be paid Depreciated Historic Cost on transfer of the Contracted Assets.
The State of Gujarat is leveraging on its unique strengths for developing tourism themes covering coastal tourism, business & convention tourism, weekend tourism, eco-tourism, medical tourism, heritage tourism, religious tourism, arts & culture, wayside amenities etc. Gujarat is in the process of upgrading/ creating tourism infrastructure, providing training to service providers, sensitizing local population, creating integrated themes and strengthening of local institutions. Tourism locations are being developed in an integrated manner by upgrading infrastructure, urban area development and environment improvement so as to provide the tourist an inimitable experience. Government of Gujarat has for this purpose, created a special purpose vehicle SPV; namely GUJTOP – Gujarat Tourism Opportunity Limited.