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Indian Economy

Infrastructure Status for Convention Centres

  • 20 May 2021
  • 2 min read

Why in News

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

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

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