Lok Sabha Question No. 212 (STARRED), answered on 2015-12-14
Subject: Promotion of Rural Tourism
Ministry: TOURISM
Asked by: PRAHLAD SINGH PATEL, (ADV.) JOICE GEORGE

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA STARRED QUESTION NO.*212 ANSWERED ON 14.12.2015

## PROMOTION OF RURAL TOURISM

## *212. SHRI PRAHLAD SINGH PATEL: ADV. JOICE GEORGE:

Will the Minister of TOURISM be pleased to state:

- (a) the details of the schemes being implemented for the promotion of rural  tourism  in  the  country  along  with  the  funds  sanctioned, released  and  utilised  in  this  regard  during  each  of  the  last  three years and the current year, State/UT-wise and year-wise; (b) whether  the  Government  has  formulated  any  new  scheme  under the 'Village Tourism' Project for the development of tourism in the rural areas of the country and if so, the details thereof; (c) whether  the  Government  has  identified  a  number  of  villages  for developing  rural  tourism  in  the  country  and  if  so,  the  details thereof, State/UT-wise including Madhya Pradesh; (d) whether  the  Government  is  considering  to  give  priority  to  homestays in the rural areas of the country; and if so, the details of the policy/guidelines formulated regarding rural tourism  as  well  as  home-stay  accommodation  for  generation  of
- (e) rural employment in the country?

## ANSWER

MINISTER OF STATE FOR TOURISM (INDEPENDENT CHARGE) (DR. MAHESH SHARMA)

- (a)  to (e):  A Statement is laid on the Table of the Sabha.

*********

STATEMENT  IN  REPLY  TO  LOK  SABHA  STARRED  QUESTION  NO.*212 ANSWERED ON 14.12.2015 REGARDING PROMOTION OF RURAL TOURISM (a) to (c): The Ministry  of  Tourism  has  launched  a  new  Scheme Swadesh Darshan for Integrated Development of Tourist Circuits around Specific  Themes  in  2014-15.  The  Rural  Tourism  Circuit  has  been identified as one of the twelve thematic circuits for development under the  scheme.       Under  Swadesh  Darshan,  integrated  development  of theme  based  circuits  has  been  taken  up  for  holistic  and  inclusive development which can provide engaging and complete tourism experience to both domestic including low budget tourists and foreign tourists. The Scheme envisage enhancement of tourist attractiveness in a  sustainable  manner  by  developing  world  class  infrastructure  in  the circuit destination including rural tourism sites. This year no project has been sanctioned under the Rural Tourism Circuit theme. The Ministry  of  Tourism  has  a  Rural  Tourism  Scheme  which  is  a part of Product/Infrastructure Development for Destinations and Circuits (PIDDC) Scheme. The main objective of the scheme is to showcase rural life, art, culture and heritage in villages, which have core competence in art  &  craft,  handloom,  textiles,  natural  environment  etc.  Under  the scheme, Central Financial Assistance (CFA) is provided for infrastructure development and capacity building to State Governments/Union Territory Administrations for each identified site by them. However, no funds were allocated for the States under the PIDDC scheme  during  2015-16  and  an  amount  of  Rs.20.00  crore  has  been allocated under U.T. Plan for the PIDDC during 2015-16. The details of funds sanctioned, released and utilized for development of Rural Tourism sites in the country during the last three years is at Annexure I. (d): The Ministry of  Tourism  has  a  voluntary  all  India  Scheme  named 'Incredible  India  Bed  and  Breakfast/Homestay  Establishments'  which had  been  communicated  to  all  the  State  Governments  and  Union Territory Administrations. The scheme is applicable for urban as well as rural areas. (e):   The main guidelines of the Swadesh Darshan scheme and Incredible  India  Bed  and  Breakfast/Homestay  Establishments  are  at Annexure II.

- ********

ANNEXURE-I

STATEMENT IN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO.*212 ANSWERED ON 14.12.2015 REGARDING PROMOTION OF RURAL TOURISM

Details of Rural Tourism Projects Sanctioned by the Ministry of Tourism during the last three years

Year 2012-13: (Rs. in lakh)

| Sl. No.   | Name of the State   |   No. of Rural Tourism Projects Sanctioned |   Amt. Sanctioned |   Amt. Released |   Amt. Utilised |
|-----------|---------------------|--------------------------------------------|-------------------|-----------------|-----------------|
| 1         | Arunachal Pradesh   |                                          1 |             20    |           16    |           16    |
| 2         | Jammu and Kashmir   |                                          3 |             51    |           40.8  |           44.2  |
| 3         | Maharashtra         |                                          1 |             49.08 |           39.26 |           39.26 |
| 4         | Meghalaya           |                                          1 |             50    |           40    |            0    |
| 5         | Mizoram             |                                          2 |             62.7  |           50.16 |           62.7  |
| 6         | Nagaland            |                                          6 |            203.33 |           40.63 |           98.88 |
| 7         | Uttarakhand         |                                          1 |             17    |            3.4  |            3.4  |
|           | Total               |                                         15 |            453.11 |          230.25 |          264.44 |

Year 2013-14: (Rs. in lakh)

| Sl. No.   | Name of the State   |   No. of Rural Tourism Projects Sanctioned |   Amt. Sanctioned |   Amt. Released |   Amt Utilised |
|-----------|---------------------|--------------------------------------------|-------------------|-----------------|----------------|
| 1         | Jammu and Kashmir   |                                         30 |            928.31 |          710.66 |         318.66 |
|           | Total               |                                         30 |            928.31 |          710.66 |         318.66 |

Year 2014-15: (Rs. in lakh)

| Sl. No.   | Name of the State   |   No. of Rural Tourism Projects Sanctioned |   Amt. Sanctioned |   Amt. Released |   Amt Utilised |
|-----------|---------------------|--------------------------------------------|-------------------|-----------------|----------------|
| 1         | Jammu and Kashmir   |                                          4 |            131.05 |            26.2 |              0 |
|           | Total               |                                          4 |            131.05 |            26.2 |              0 |

********

ANNEXURE-II

STATEMENT  IN REPLY TO PART (e) OF  LOK  SABHA  STARRED QUESTION NO.*212 ANSWERED ON 14.12.2015 REGARDING PROMOTION OF RURAL TOURISM

## SWADESH DARSHAN SCHEME

The  scheme  is  proposed  to  be  implemented  as  Central  Sector scheme during the 12th Five Year Plan and beyond.

1. General Provisions of Scheme:

## 1.1 Definitions-

-  Tourist Circuit is defined as a route on which at least three major tourist destinations are located such that none of these are  in  the  same  town,  village  or  city.  At  the  same  time,  it would  be  ensures  that  they  are  not  separated  by  a  long distance. It should have well defined entry and exit points. A tourist who enters should get motivated itself to visit all the places identified on the circuit.
-  Theme  based  Tourist  Circuits  defined  as  a  tourist  circuit around  specific  themes,  such  as  religion,  culture,  ethnicity, niche etc. A Theme based Tourist Circuit could be confined to a  State  or  could  be  a  regional  circuit  covering  more  than  a State/Union Territory.
- 1.2 National  Steering  Committee  (NSC):      To steer the  mission objectives and vision, a National Steering Committee will be constituted with the following composition:

|   1. | Minister in charge, M/O Tourism                                                    | Chairman      |
|------|------------------------------------------------------------------------------------|---------------|
|    2 | Secretary, M/O Tourism                                                             | Vice chairman |
|    3 | Addl. Secretary, M/O Tourism                                                       | Member        |
|    4 | Financial Advisor, M/O Tourism                                                     | Member        |
|    5 | Secretary or his representative*, M/O Culture                                      | Member        |
|    6 | Director General, ASI                                                              | Member        |
|    7 | Secretary or his representative*, M/O Urban Development                            | Member        |
|    8 | Secretary or his representative*, M/O Housing and Urban Poverty Alleviation (HUPA) | Member        |
|    9 | Secretary or his representative*, M/O Civil Aviation                               | Member        |

|   10. | Secretary or his representative*, M/O Skill Development                                       | Member           |
|-------|-----------------------------------------------------------------------------------------------|------------------|
|    11 | Secretary or his representative*, M/O Road Transport & Highways (RT&H)                        | Member           |
|    12 | Secretary or his representative*, M/O Shipping                                                | Member           |
|    13 | Secretary or his representative*, M/O Power                                                   | Member           |
|    14 | Secretary or his representative*, M/O Environment & Forest (MOEF)                             | Member           |
|    15 | Secretary or his representative*, M/O Water Resources, River Development & Ganga Rejuvenation | Member           |
|    16 | Secretary or his representative*, M/O Rural Development                                       | Member           |
|    17 | Executive Director (Tourism & Catering), M/O Railways                                         | Member           |
|    18 | Joint Secretary/Addl. Director General, M/O Tourism                                           | Member Secretary |

## 1.2.1    Key responsibilities of NSC:

-  Enunciate  the  vision  and  chalk  out  the  road  map  for  the scheme and provide a platform for exchange of ideas;
-  Oversee  all  operations,  steer,  review  and  monitor  overall performance of the scheme and provide guidance on specific issues relating to the scheme;
-  Recommend  mid-course  corrections  in  the  implementation tools;
-  Periodical oversight and review of proposed/ongoing projects.

## 1.3 Mission Directorate:

There  shall  be  a  Mission  Directorate  headed  by  the  Member Secretary, NSC as Nodal officer. Composition of the Mission Directorate will be as under:

|   1. | Joint Secretary/Addl. Dir. General (Member Secretary, NSC)   | Chairperson   |
|------|--------------------------------------------------------------|---------------|
|    2 | Director/Deputy Secretary, Finance/Financial Controller      | Member        |
|    3 | Secretary, Tourism of the concerned State                    | Member        |

|   4. | Representatives of other concerned Ministries   | Member   |
|------|-------------------------------------------------|----------|
|    5 | Director/Deputy Director General, M/O Tourism   | Convener |

## 1.3.1 Key responsibilities of the Mission Directorate:

-  Identification of projects in consultation with the States/UTs Govts and other stakeholders;
-  Appointment of the Project Management Consultant;
-  Outsourcing of independent specialised agencies for appraisal of DPRs, if required.
-  Identifying the implementing agencies for implementation of various components of the project;
-  Ensuring  effective  coordination  with  the  States/UTs  Govts and other stakeholders, Implementing  Agencies  etc. for effective  implementation  of  the  scheme  in  a  time  bound manner.
-  Seeking approvals for the identified projects from the Central Sanctioning  and  Monitoring  Committee  and  reporting  the progress of implementation to the said committee at regular intervals.
-  Sanction  of  projects  and  release  of  funds  to  the  identified agencies.
-  Capacity development of States/UTs and other implementing agencies for undertaking various activities relating to identified circuits and destinations therein through setting up of Project Management Units (PMUs), if required.
- 1.4    Program Management  Consultant  (PMC):  The  PMC  will  be  a National Level Consultant to be appointed by the Mission Directorate.

## 1.4.1 Key Responsibilities of the PMC:

-  Preparation of Detailed Perspective Plan (DPP) for the identified circuits, identifying the gaps  in infrastructural amenities and related skills. The PMC may suggest suitable agencies for addressing the skill gaps. The perspective plan should also include assessment of the funds required, including  sources  of  funds.  Business  models  for  investment and operations should be evolved. The thrust of the perspective  plan  should  be  on  convergence  between  the different  schemes  of  the  central  Ministries,  the  State/UT Governments and other agencies.
-  Identification of projects in the circuits;
-  Preparation of Detailed Project Reports (DPRs) -Comprehensive  DPRs  should  be  prepared  for  each  circuit

after consultations with the respective State Government/UT administration,  local  bodies,  other  stakeholders.  For  the components to be funded by public funding, DPRs should be prepared on the basis of Schedule of Rates prescribed by the central/State PWD. The DPRs should include inter alia-

- (a) List of individual projects aimed at integrated development of the identified tourist circuit;
- (b) Project Structuring (Capital structuring, implementation framework)
- (c) Components  meant  for  private  sector  to  joint  sector investment and possible financial linkages
- (d) Identification of sources of funds from various Government Schemes/ Private Sector
-  Liaison with States/UTs/ Other stakeholders
-  Submission  of  periodical  progress  report  to  the  Mission Directorate for monitoring of the projects;
-  Assistance for financial closure of projects for PPP and other projects.

## 1.5 Central Sanctioning & Monitoring Committee (CSMC):

There  will  be  a  Central  Sanctioning  &  Monitoring  Committee (CSMC)  responsible  for  sanctioning  of  the  projects  submitted  by  the Mission Directorate and regular monitoring of the progress of implementation. Composition of the CSMC will be as under:

| Secretary, MoT                                   | Chairperson   |
|--------------------------------------------------|---------------|
| Financial Advisor, M/O Tourism                   | Member        |
| Additional Secretary, M/O Tourism                | Member        |
| Joint Secretary/ADG, MoT (Member Secretary, NSC) | Member        |

The  Committee  may  invite  representatives  of  other  Ministries,  if required.

## 2. Identification of Thematic Tourist Circuits and sanction of projects therein:

## 2.1    Selection criteria and procedure:

-  The  Tourist  Circuits/Destinations  would  be  identified  by  the MoT in consultations with the stakeholders and States on the basis  of  a  pre-dominant  tourism  theme,  considering  factors such  as  current  tourist  traffic,  connectivity,  potential  and significance attached to the sites, holistic tourist experience, etc.  The  Themes  shall  include  religion,  culture,  heritage, nature, leisure or any other theme.
-  Central Sanctioning & Monitoring Committee (CSMC)/Mission Directorate  will  recommend  the  list  of  Thematic  Tourist Circuits/Destinations to be taken up for integrated infrastructure  development  for  approval  of  the  Chairman, National Steering Committee.
-  Detailed Perspective Plan (DPP) for each tourist circuit, and DPRs  for  each  individual  project  would  be  prepared  by  the PMC giving the details as stipulated in para 7.4.1.
-  Appraisal of DPRs will be done by the Mission Directorate or any independent specialised agency outsourced by the directorate for the purpose.
-  Projects  recommended  by  the  Mission Directorate after appraisal  will  be  placed  before  the  Central  Sanctioning  and Monitoring Committee for approval.
- 2.2 Admissible project components under the Scheme: An illustrative  list  of  components,  that  would  be  eligible  for  Central Financial Assistance under the scheme is given below:

## 2.2.1 Infrastructure Development:

-  Development/Upgradation of Passenger Terminals (Road, Rail, Water Transport)
-  Procurement  of  equipment  for  eco-friendly  modes  of  tourist transport
-  Improvement of road connectivity leading to tourist sites/destinations.
-  Use of clean energy sources for street lighting
- 
- Slum upgradation
- Tourism Information/Interpretation centres with ATMs/money
-  exchange counters
- 
- Informatory/Directional signages
-  Wayside Amenities with emergency vehicle breakdown, repair and refuel facilities
-  Infrastructure provision for stationing of caravan vehicles;
-  Convention Centres/Golf Course/Aquamarine Parks/ amusement parks/theme parks
-  General  Improvements  such  as  earth  filling,  landscaping (including  trees,  shrubs),  water  fountains,  fencing,  lighting, pavements/walkways/pathways/driveways, seating facilities/shelters, drinking water points, garbage bins, storm water drainage, treatment facilities for sewerage /effluent
-  External  infrastructure  such  as  water  supply,  sewerage, drainage, electricity and roads.
-  Restoration, conservation, illumination of monuments/ heritage structures;
-  Renewable sources of energy for tourist infrastructure
-  Environmental care and access to clean technology
- 
- Parking facilities for two-wheelers, cars, buses, caravans
-  Toilet , Cloak room facilities and waiting rooms.
-  Equipments for tourism activities such as sound & light show, water sports, adventure sports, etc
-  Construction of craft haats/bazaars/souvenir shops/cafeteria
-  Construction of open air theatres/amphi-theaters
-  Construction of nature trails, watch towers, rain shelters, log huts
-  First Aid Centres (including Indian Medicines System);
-  Helipads,  Heliports,  Airstrips,  Ropeways  required  for  tourist in the identified circuits
-  Shoreline development  &  Rejuvenation of natural water bodies such as rivers, lakes, streams, river fronts.
-  Improvement  in  communication  through  telephone  booths, mobile services and internet connectivity.
-  Any other activity directly related to tourism and required for development of the identified circuit.
-  Consultation  with  the  concerned  administrative  Ministries, wherever  required,  will  be  done  on  the  project  components under the scheme.
- 2.2.2 Capacity Development, Skill Development & Knowledge management:
-  Special  courses  to  address  the  skill  gaps  identified  by  the PMC in the Detailed Perspective Plan (DPP).
-  Short  duration  skill  development  training  programme  under 'Hunar se RozgarTak(HSRT)' and 'Earn while you learn'programmes.
-  Broadbasing of travel and hospitality education and training, and engagement of Vocational Training Providers (VTPs).
-  Emphasis on tapping the local potential and expertise in art and crafts.
-  Documentation  and  preservation  of  the  knowledge  base  in tourism for future use.

## 2.2.3 Online Presence:

GIS based website development and mobile applications, providing:

-  Location based services and location based contents
-  Booking facilities through E-Commerce applications
- 
- Linkages to applications of existing service providers
-  Support Dash Boards for tourists and Operators

## 2.3

- 
- Decision support reporting for the Department

## Project Management System:

-  Tracking progress through online UC Submission
- 
- Tracking Procurement through e-procurement system
-  Tracking completion of milestones
-  Tracking issue escalations and variations

## Permission based knowledge portal:

-  Foster  a  climate  of  collaboration  among  practitioners  and Academicians
- 
- Create a back end digital library for content preservation
- Push relevant research papers to appropriate institutions for
-  future references.
- 
- Data Analysis and reporting
- 2.2.4 Upto 10% of the Scheme allocation to be earmarked for IEC Component.

## Inadmissible Component projects under the Scheme:

The assistance under this scheme shall not be admissible for the following components:

- (a)
- Land acquisition for development
- (b) Resettlement and rehabilitation package, maintenance and management of the assets created
- Operation,
- (c) Improvement/investments in assets/structures owned by private entities
3. Implementing  Agency  (IA):  The  projects  identified under  this scheme shall be implemented through the identified agencies.

## 4. Funding pattern for the projects:

-  The  Scheme  shall  be  100%  centrally  funded  for  the  project components  undertaken  for  public  funding.    Efforts  will  be made to achieve convergence with other schemes of Central and  State  Governments  and  also  to  leverage  the  voluntary funding  available  for  Corporate  Social  Responsibility  (CSR) initiatives of Central Public Sector Undertakings and corporate sector. Efforts would be made to introduce suitable Public Private Partnerships for improved sustainability of the projects.  The  Viability  Gap  Funding  (VGF)  may  be  provided under the mission in accordance with the relevant guidelines/instructions of the Govt.
-  It is envisaged that the funding of individual project will vary from State to State and will be finalised on the basis of DPRs prepared by PMC enabling convergence with other government schemes.
-  The  State  Governments  would  submit  an  undertaking  with Government  of  India  indicating  their  commitment  to  the scheme by ensuring  that  the  operation  and  maintenance  of the identified and developed projects should be the responsibility  of  the  State.  A  Special  Purpose  Vehicle  (SPV) may  be  created  for  the  purpose,  wherever  feasible.    The undertaking would spell out specific milestone to be achieved indicating  the  works  to  be  undertaken  by  them  in  physical and financial terms. State  Government contribution towards land, rehabilitation package, O&M should be quantified in the DPR.

## 5. Disbursal of Funds:

-  The  funds  would  be  released  to  the  Implementing  Agency. The powers to sanction funds in the scheme shall be strictly in conformity with the GFRs and the directions issued by the M/O  Finance  from  time  to  time.  All  the  proposals  will  be routed through IFD of M/O Tourism.
- Funds to the State Govts/UT Administration will be released
-  as under :-

1st Instalment - 20% of the project cost on approval/sanction of the project.

2nd  instalment  -  60%  of  the  project  cost  after  receipt  of utilization certificate for the first instalment.

3rd  instalment  -  Remaining  20%  of  the  project  cost  on completion of the work and receipt of utilization certificate.

-  For  the  Himalayan  and  NE  States,  different  funding  pattern and  duration  of  projects  may  be  determined  by  the  Mission Directorate keeping in view the difficulties in these areas.
-  The financial assistance sanctioned to the Central agencies under this scheme will be released as under:

1st Instalment50% of the sanctioned amount on approval/sanction.

2nd instalment -30%  of the sanctioned amount after utilization of the first instalment

3nd  instalment  -  Remaining  20%  of  the  sanctioned  amount after utilization of the first and second instalments.

6. Codal formalities: The Implementing agency shall follow all codal formalities while awarding contracts for works/material/equipment procurement  and  ensure  complete  transparency  in  its  transactions.  Etendering/e-procurement  will  be  compulsorily  followed  while  for  all tenders.
7. Milestones to be observed by the implementing agencies:
3.  Land  to  be  used  for  the  project  must  be  free  from  all encroachments;
4.  Invitation and finalization of all tenders for the projects shall be  completed within 3 months from the date of sanction of the projects;
5.  Work for different phases of the projects shall be completed within the period stipulated in the respective sanction letters.
8. Management  of  Assets  created:    The  tentative  operation  and maintenance costs of the projects shall be worked out by PMC at the time  of  preparation  of  DPR  &  emphasis  shall  be  given  to  working  out options  for  sustainable  operation  and  maintenance  models  through innovative  revenue  generation  options  with  involvement  of  Private sector/NGOs/Tour  Operators  in  operation  and  maintenance.    This  will help  to  minimize  budgetary  commitments  on  the  part  of  the  State Government  for  O&M  services.  The  National  Level  Consultants  shall render transaction advisory services to assist the state governments in the successful setting up of sustainable O&M models if required.
9. Outcomes Parameter: The outcomes of the Integrated Infrastructure Development  of Theme-Based  Tourist Circuits on a Mission mode shall be measured in terms of
8.  Increase in tourist traffic in the identified circuits;
9.  Employment generation in the identified sectors;
10.  Enhancement  of  awareness  and  development  of  skills  and capacity to augment tourism with value added services;
11.  Increase in revenue generation
12.  Private sector investment in the identified circuits.

The  outcomes  will  be  regularly  evaluated  and  measured  through survey/study by  independent  agency  appointed  by  the  Ministry  of Tourism.

***********

## Guidelines  for  Approval  and  Registration  of  Incredible  of  India  Bed  & Breakfast/Homestay Establishments

## Introduction:

1. Hotels  and  other  supplementary  accommodation  are  an  integral part of a tourist's visit to a place and the services offered by them can make  his/her  visit  memorable.  With  the  aim  of  providing  comfortable Home  Stay  Facilities  of  Standardized  World  Class  Services  to  the tourists,  and  to  supplement  the  availability  of  accommodation  in  the Metros  and  tourist  destinations,  Ministry  of  Tourism  will  classify  fully operational rooms of Bed & Breakfast/Home Stay Facilities as 'Incredible India Bed & Breakfast/Homestay Establishments'. The basic idea  is  to  provide  a  clean  and  affordable  place  for  foreigners  and domestic tourists  alike  including  an  opportunity  for  foreign  tourists  to stay with an Indian family to experience Indian customs and traditions and relish authentic Indian cuisine.
2. The  Incredible  India  Bed  &  Breakfast/Homestay  Facilities  will  be categorized as follows:-
3. (a) Silver
4. (b) Gold
3. The Regional Classification Committee, as specified in the guidelines,  will  inspect  and  assess  the  Bed  &  Breakfast/Homestay Establishments, based on facilities and services offered. The details of the  standards,  facilities,  services  and  the  documents  required  for approval of such establishments will be as per these guidelines.
4. The  Incredible  India  Bed  &  Breakfast/Homestay  Establishment, once  approved  by  Ministry  of  Tourism,  will  be  duly  publicized.  A directory of all such approved establishments will also be prepared, so as  to  enable  domestic  as  well  as  foreign  tourists  to  live  in  a  homely environment and to take advantage of the scheme. In addition, efforts will be made to organize short term training in hospitality trade to those who would opt for such training.

## Detailed Guidelines:

1. The Classification  for  Incredible  India  Bed  &  Breakfast/Homestay establishment will be given only in those cases where the owner/ promoter of the establishment along with his/her family is physically  residing  in  the  same  establishment  an  letting  out minimum one room and maximum six rooms (12 beds).
2. The scheme will be on bed and breakfast basis and charges will have  to  be  levied accordingly. The  type  of breakfast  to  be displayed and the visitors will have to be informed in advance so as to avoid unnecessary dispute.
3. Once an establishment applies for classification/re-classification, it will  have  to  be  ready  at  all  times  for  inspection  by  the  Regional Classification Committee. No requests for deferment of inspection will be entertained.
4. Classification will be valid for two years from the date of issue of orders or in case of reclassification from the date of expiry of the last classification provided that the application has been received within  the  stipulated  time  i.e.  3  months  before  the  expiry  of  the last classification.
5. Incredible India Bed & Breakfast/Homestay Establishment applying for  classification  will  have  to  submit  the  following  documents along with supporting documents:
- a) Application format
- b) Checklist of facilities.
- c) Undertaking.
6. The  application  fees  payable  for  classification/reclassification  of IIB&B/Homestay  will  be  as  follows  for  the  Govt.  of  India.  The demand draft will have to be payable to 'Pay & Accounts Officer, Ministry of Tourism, and New Delhi'.
7. An IIB&B/Homestay Establishment will be classified following two stage procedure.
- a) The  presence  of  facilities  and  services  will  be  evaluated against  the  enclosed  Checklist.  (Checklist  will  have  to  be duly  filled  in  and  signed  on  all  pages  and  submitted  along with the application).
- b) The quality of facilities and services will be evaluated by the Regional  Classification  Committee.  Due  preference  will  be accorded  to  the  homes,  which  are  able  to  provide  Indian experience  by  way  of  Indian  décor,  authentic  and  exotic Indian cuisine etc.
8. The Regional Classification committee will consist of the following:
1. Regional Director, India tourism - Chairman.
2. Representative from IATO.
3. Representative from TAAI.
4. Representative from local India tourism Office.
5. Representative from State Tourism Department.
9. The  Chairman  and  any  2  members  will  constitute  a  quorum.  The recommendation  of the Committee  will be approved by the Chairman Hotel and Restaurant Approval and Classification committee (HRACC).
10. Any deficiencies/rectifications pointed out by the Regional Classification  committee  will  have  to  be  complied  within  the stipulated  time  which  will  be  allotted  in  consultation  with  the representative/representatives of the establishment during inspection. Failure to do so will result in rejection of the application.
11. The  Committee  may  recommend  to  the  Chairman,  HRACC  a category either higher or lower than the one applied for. In case the  category  applied  for  is  higher  than  the  one  recommended  by the Committee, then the applicant will have to deposit the required fee  for  the  recommended  category.  However,  in  case  of  the category recommended being lower than the one applied for, then there will be no refund of extra classification fee.
12. The  IIB&B/Homestay  Establishment  will  be  expected  to  maintain required  standards  at  all  times.  The  Chairman,  HRACC  could authorize  a  surprise  inspection  of  the  establishment  at  any  time without previous notice.
13. Any changes in the facilities of the IIB&B/ Homestay Establishment will  have  to  be  informed  to  the  Regional  Director,  India  tourism Office, within 30 days. If any violation of this comes to the notice of the Committee then the classification will stand withdrawn/terminated.
14. All cases of classification would be finalized within 30 days of the application being made  to the Regional Director concerned complete in all respect.
15. In  case  of  any  dissatisfaction  with  the  decision  of  HRACC,  the establishment  may  appeal  to  Secretary,  Ministry  of  Tourism,  and Government of India for review and reconsideration within 30 days of receiving the communication regarding classification /reclassification.  No  requests  will  be  entertained  beyond  this period.
16. Ministry  of  Tourism,  Government  of  India  reserves  the  right  to modify the guidelines/terms and conditions from time to time.
17. The rate of taxes for property, electricity and water to be paid for classification IIB&B/Homestay Establishment will be those prescribed by the appropriate authorities.

| Star Category   | For Classification/Reclassification   |
|-----------------|---------------------------------------|
| Silver          | Rs. 3,000                             |
| Gold            | Rs, 5,000                             |

Note: Items No. 5 (c), 6, 8 and 15 may be suitably amended by the State Govt. /UT.

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