AP Govt clears FOB Connecting Novotel Hotel, Varun Project

Visakhapatnam:Andhra Pradesh Government has accepted the proposal for construction of a Foot Overbridge (FOB) connecting sea-facing Hotel Novotel Varun Beach and another five star deluxe hotel under construction by Varun Group in Visakhapatnam.

The government granted necessary approvals as recommended by the State Investment Promotion Board (SIPB) for the FOB by VMRDA, connecting the existing Novotel Hotel and

the proposed hotel project with the condition that the bridge is designed as an iconic structure.

GO Ms. No. 8 dated May 22, 2025 issued by the Department of Youth advancement, Tourism & Culture obtained by Bizz Buzz stated that the project proponent submitted a more detailed proposal with an investment of Rs899.50 crore and direct employment potential of 1300 people along with a draft techno-economic Viability study for a 318 keys 5 star hotel-cum- commercial/office space.

Varun Hospitality Private Limited, Visakhapatnam, the project proponent which had earlier made a proposal under the previous regime, requested the coalition government for incentives under the ultra-mega project as per the AP Tourism Policy 2024-29.

The GO signed by Special Chief Secretary, Tourism Ajay Jain said, accordingly, the proposal was placed before the SIPB on 15.05.2025 with the recommendation of the State

Investment Promotion Committee (SIPC) meeting held on 01.04.2025.

After detailed discussions, the board has recommended for reimbursement of 100 per cent net SGST for a period of 15 years or up to realization of100 per cent fixed capital investment, whichever is earlier and to extend all other incentives as per the AP Tourism Policy 2024-29 to Varun Hospitality Private Limited.

The order stated after careful examination of the matter the government granted incentives based on the recommendations of the SIPB and as per the provisions of AP Tourism Policy 2024-29 for Taj Gateway Re-development into 5-star Deluxe Hotel-cum- Service Apartments at Beach Road, Visakhapatnam by Varun Hospitality Private Limited.

The incentives include as reimbursement of 100 per cent net SGST for a period of 15 years or up to realisation of 100 fixed capital investment, whichever is earlier, all other incentives as per the AP Tourism Policy 2024, which include reimbursement of 100 per cent of stamp duty and transfer duty, 100 per cent of stamp duty for lease of land/shed/buildings, mortgage and hypothecations, waive 100 per cent of land use conversion charge, wherever applicable and 10 per cent of Fixed Capital Investment (FCI) limited to Rs40 crore for ultra mega tourism projects in five equal instalments and electricity charges at industry rates.