The Indian Finance Ministry has recently designated ‘Infrastructure’ status to exhibition and convention centres. This move comes on the heels of 2020’s decision to include affordable rental housing projects in the roster of sectors acknowledged as infrastructure.
The Inclusion of Exhibition-cum-Convention Centre into Infrastructure Status
Exhibition-cum-Convention Centre now figures prominently in the Harmonised Master List of Infrastructure sub-sectors, facilitated by the introduction of a novel item in the domain of Social and Commercial Infrastructure. It’s crucial to note, however, that the privileges associated with ‘infrastructure’ projects remain applicable only for initiatives with a minimum built-up floor area of 1,00,000 square metres. The area allocation can be configured exclusively for exhibition space or convention space, or a combination thereof.
Included entities under this move feature primary infrastructure like exhibition centres, convention halls, auditoriums, plenary halls, business centres, along with meeting halls, amongst others. This innovative measure is likely to encourage the emergence of more such ventures across the multitude of tourist destinations scattered throughout India.
Justification for the Infrastructure Status
India currently lacks substantial convention centres or standalone halls designed to accommodate between 7,000 to 10,000 individuals. This is unlike Thailand, a significant global MICE (Meetings, Incentives, Conferences, and Exhibitions) destination that boasts numerous large-scale venues. Transforming India into a MICE destination could spur considerable revenue inflow, given the host of global companies that have established a strong presence within the country’s shores.
Understanding the Harmonised Master List of Infrastructure Sub-sectors
The Harmonised Master List of Infrastructure sub-sectors, announced by the Finance Ministry, encompasses a broad spectrum of categories:
1. Transport and Logistics: This includes roads and bridges, inland waterways, airports, and more.
2. Energy: Encompassing electricity generation and transmission.
3. Water and Sanitation: This category encapsulates solid waste management and water treatment plants.
4.Chemicals: This covers the telecommunications sector.
5. Social and Commercial Infrastructure: This broad category includes education institutions (capital stock), sports infrastructure, hospitals (capital stock), tourism infrastructure, and more.
Significantly, inclusion in this esteemed list implies access to concessional funds, enabling the promotion of projects and the continuity of construction for the specified sub-sectors. Regrettably, the prestigious ‘infrastructure’ tag does not presently extend to include crucial tax breaks.
