To make the 2010 Commonwealth Games, being hosted by India for the first time, a grand success, Finance Minister P Chidambaram on Wednesday proposed a grant of Rs 500 crore (Rs 5 billion) in the Budget for 2007-08.

The Centre will sanction Rs 350 crore (Rs 3.5 billion) to the Delhi government and another Rs 150 crore (Rs 1.5 billion) to the Youth Affairs and Sports Ministry for organising the games.

Presenting the budget in Parliament, Chidambaram also earmarked Rs 50 crore (Rs 500 million) for the Commonwealth Youth Games to be held in Pune next year.

In view of a shortage of 20,000 rooms for the Commonwealth Games, Chidambaram said a five-year income tax holiday will be granted to two, three and four star hotels as well as convention centres with a seating capacity of not less than 3,000.

These hotels should be completed and begin operations in the national capital territory of Delhi or in adjacent districts during the period April 1, 2007 to March 31, 2010.