India News | Keravan Kerala: KSIDC to Finance Purchase of Tourist Caravans

Thiruvananthapuram, Dec 1 (PTI): In a major boost to Kerala's stakeholder-friendly Caravan Tourism project 'Keravan Kerala', the state's investment promotion agency Kerala State Industrial Development Corporation (KSIDC) has come out with an attractive scheme to provide loans up to Rs five crore to purchase tourist caravans and set up caravan parks.

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Under the scheme, an enterprise is entitled to get a loan of up to Rs one crore per caravan, or 70 per cent of the cost, for buying up to five vehicles.

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The range of the loan is from Rs 50 lakh to Rs one crore per vehicle and the loans will be available only to buy new vehicles, an official statement said here.

The interest is pegged at 8.75 per cent (floating) with a 0.5 per cent rebate for prompt repayment. The loan should be repaid in 84 months after a twelve-month moratorium period.

The enterprises eligible for the loan are existing resorts or resort groups (firms, LLP and Limited Companies), fleet owners and tour operators and repatriates, it said.

The Caravan Tourism policy, announced by Tourism Minister P A Mohamed Riyas in September this year, has generated tremendous response from the industry since its online registration process began a month back.

M G Rajamanickam, Managing Director, KSIDC said Keravan Kerala is going to be an initiative that redefines tourism in the state.

"The response to the policy within a short span of its announcement has been encouraging. As the Government's nodal agency for industrial and investment promotion, KSIDC sees it as a highly rewarding investment avenue for entrepreneurs", he said.

V R Krishna Teja, Tourism Director, said the KSIDC scheme will provide an added thrust to the project, which is set to take off soon.

"It also reflects on how various government departments and agencies are working in tandem for the success of this novel initiative that is going to be a key component in the post-pandemic revival of tourism in Kerala", the official said.

The policy offers attractive incentives for the investors.

The two components of the initiative are caravan operation and setting up caravan parks across the state, for which clear-cut procedures and protocols have been laid down to ensure a pleasant experience for visitors.

Under the policy, the first 100 caravans will get to a subsidy of Rs 7.50 lakh or 15 per cent of the cost.

Within a short span, the project has also elicited keen interest from auto majors, top travel and hospitality players, local self-government institutions and service providers down to the grassroots, the official statement added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)