Incomplete hotels to loose out of tax holiday...!!

Major hospitality chains planning to open properties in the national capital region (NCR) before the Commonwealth Games (CWG) in October could lose out on the five-year tax holiday benefit if they are not able to throw open the entire room inventory before the sporting extravaganza.

According to tourism secretary Sujit Banerjee, the ministry would oppose full tax holiday to companies not closing projects on time. “How can hotels open partially and yet get the tax-holiday. They will have to come to us for registration and classification, and we will not allow such a thing”.

A host of hospitality majors, domestic and foreign including the Taj Group, InterContinental, Hilton, Starwood Hotels and Resorts have projects in the pipeline, which are slated for launch before the Commonwealth Games. While InterContinental group plans to open its Crowne Plaza in New Delhi before the Games, its two other properties would be operational in 2010 but not necessarily before the CWG.

“By opening partially, hotels will not only gain the benefit of the five-year tax holiday (except for five-star properties which are outside the ambit of the scheme), but will also get their licences fast as the ministry is under immense pressure to get the required rooms ready,” said a hospitality consultant on the condition of anonymity. The tourism ministry is also pushing for an extension of the tax-holiday till July 2010 from the earlier March deadline (Click here to read previous report).

According to market estimates, only 50% of the total proposed room inventory will be ready before the Games. Though some hotel majors maintain they will launch full operations of their properties, sector analysts and experts are of the opinion that ground realities are different and as projects are met with delays, owners are planning to go for only partial openings.

Delhi govt: Finish work or be blacklisted

Chief Minister Sheila Dikshit on Monday threatened that Delhi government would blacklist contractors who fail to complete Commonwealth Games projects on time. This comes two days after Commonwealth Games Federation chief Michael Fennell expressed disappointment over delays reported in the completion in some Games venues.

While Fennell had on Saturday referred to delays in the construction of Jawaharlal Nehru Stadium, which is also the venue for the opening and closing ceremonies, and the SPM swimming pool complex, Organising Committee chief Suresh Kalmadi claimed that the onus of completing projects lies with the respective agencies involved, besides the state government.

“We cannot afford to let down our nation and are committed to making the Games a grand success,” Diskhit told officers from the Delhi government during today’s annual meet. “The government will not listen to any excuses for delay in completion of projects; contractors responsible for these delays will be blacklisted, apart from other contractual actions (being taken) against them.”

Setting the sports event to be held next October as a priority for the government for the next eight months, Dikshit directed departments such as the PWD, Delhi Jal Board, the power distribution companies (discoms), and the Transport department to take measures to finish projects related to the event. She asked the agencies to work “in tandem” and avoid confusion and duplication of work.

Referring to the civility campaign about courtesy, civic sense and manners, launched by the government recently, Dikshit said: “As host city, we have to work together to make the Games a memorable event, which has provided (the government) an excellent opportunity to take up enormous projects simultaneously.”

PM monitors Commonwealth Games project

Prime Minister Manmohan Singh on Wednesday directed the Sports Ministry to fine-tune coordination among various agencies involved in next year's Commonwealth Games amid growing concerns that the country was not adequately prepared to host the mega sporting event.

Singh took stock of the various ongoing projects in an hour-long review meeting attended by Chief Minister Sheila Dikshit, Union Sports Minister M S Gill and Planning Commission Deputy Chairperson Montek Singh Ahluwalia among others.

"After the review meeting, the prime minister asked the sports minister to coordinate with Indian Olympic Association officials to fine-tune preparations," a PMO source said after the meeting.

Briefing the prime minister about the status of various projects undertaken by her government for the Games, Dikshit gave an assurance that all efforts are being taken to make the sporting extravaganza a great success and that all the projects will be completed well in time.

The review meeting comes nearly a month after Commonwealth Games Federation President Michael Fennell sought Singh's intervention to put things in order as it appeared that much of the crucial infrastructure projects will miss the 2010 October deadline.