India signs 'open sky' deal with US, UK

The government has signed an air services agreement based on 'Open Sky' principle with the US and another with the UK but not based on the said principle which has resulted in enhanced air seat capacity for foreign tourists from these markets to various tourist destinations in India, the Lok Sabha was informed on Monday.

In a written reply to a query Tourism Minister Renuka Chowdhury said the government has formulated the following schemes to develop the sector and provide better facilities including infrastructure, ensuring assistance to large revenue generating projects and capacity building for service providers.

Besides the government has mooted by adding room capacity, to enhance connectivity through augmentation of air seat capacity and ensuing improvement of road infrastructure.

With a view to providing stimulus to promotion to domestic tourism and encouraging high quality services, the union tourism ministry has launched a voluntary scheme to approve bonafide domestic tour operators only if they meet certain guidelines, the Lok Sabha was informed.

Chowdhury said guidelines which have been formulated in consultation with the Travel Trade Association envisage that the operator should have a minimum paid up capital of Rs five lakh and a turnover of Rs 20 lakh, having been in operation for a period of one year besides being an income tax assessee and is prepared to adhere to guidelines as framed from time to time.

During the Tenth Plan the government has sanctioned Rs 103.85 crore (Rs 1.03 billion) so far as central financial assistance to various states and union territories, she said.