Infrastructure Status for Convention Centres

• 20 May 2021

Why in News

The Finance Ministry has granted ‘Infrastructure’ status for exhibition and convention centres.

• In 2020, the government had added affordable rental housing projects to the list of sectors recognised as infrastructure.

Key Points

• Infrastructure Status to Exhibition-cum-Convention Centre:
  
  • Exhibition-cum-Convention Centre has been 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.
  • This move will enable more such projects to come up across India’s tourist destinations.
• Need for the Infrastructure Status:
  
  • 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.
• Harmonised Master List of Infrastructure sub-sectors:
  
  • The list is notified by the Ministry of Finance and included following categories:
    
    • Transport and Logistics: Roads and bridges, Inland waterways, Airport, etc.
    • Energy: Electricity Generation, Electricity Transmission, etc.
    • Water and Sanitation: Solid Waste Management, Water treatment plants, etc.
    • Communication: Telecommunication, etc.
    • Social and Commercial Infrastructure: Education Institutions (capital stock), Sports Infrastructure, Hospitals (capital stock), Tourism infrastructure, etc.
  • Inclusion in the list implies access to concessional funds, promotion of projects and continuity of construction for the specified sub-sectors.
  • However, the infrastructure tag now does not include vital tax breaks.

Source: TH