Uttarakhand Cabinet Reserves Homestay Scheme for State Residents
The Uttarakhand cabinet made a significant decision on Thursday. They declared that only residents of the state can now receive benefits under the homestay scheme. This move comes after people from other states opened homestays and claimed subsidies meant exclusively for locals.
Decision Follows Tourism Department Proposal
The tourism department prepared a proposal to limit the scheme to state residents. Officials want to boost local investment and generate revenue at the grassroots level. Tourism secretary Dhiraj Singh Garbyal explained the reasoning behind this change.
"We held a meeting with stakeholders in September last year," Garbyal said. "They felt the scheme should be limited to locals. Some people living in other states built houses here, registered them as homestays, and used them commercially without paying taxes."
How the Homestay Scheme Works
Under the current scheme, beneficiaries receive subsidies for homestay construction. They also get concessions on GST, water, and electricity bills. A family member must stay at the homestay and act as its manager. This requirement ensures the scheme supports local families directly.
Garbyal pointed out several problems with non-resident homestays. "Several such homestays were operating on residential power connections," he noted. "They were being run by hired staff instead of family members. This defeats the purpose of the scheme."
Financial Benefits for Local Residents
The scheme offers substantial financial support to eligible families. Beneficiaries can receive up to Rs 15 lakh in financial assistance. They also qualify for an interest subsidy of up to Rs 1.5 lakh. Additionally, the state provides 100% reimbursement of the state GST component for five years.
Currently, Uttarakhand has around 5,000 registered homestays across its 13 districts. The Deen Dayal Upadhyaya Homestay scheme aims to strengthen the economy of hill residents. "The idea is to give visitors a taste of Uttarakhand's food, culture, and heritage," Garbyal emphasized. "We will ensure that benefits reach only deserving people."
Alternative Option for Non-Residents
People from other states still have options to operate homestays in Uttarakhand. They can register under the Bed and Breakfast scheme. This scheme applies to urban areas including municipal corporations, municipalities, town councils, major tourist centers, and towns.
The Bed and Breakfast scheme has different requirements. Homestays can be set up on a maximum of 250 square meters of land. They must have a minimum of one room and can have a maximum of six rooms. This provides a clear alternative for non-residents interested in the tourism business.
Protecting Local Interests
The cabinet decision reflects a growing concern about preserving benefits for Uttarakhand residents. By restricting subsidies to state residents, officials hope to prevent exploitation of the scheme. They want to ensure that financial support truly helps local families build sustainable tourism businesses.
"Keeping all these factors in mind, the tourism department prepared the proposal," Garbyal concluded. The move aims to create a fair system where Uttarakhand residents receive proper support for their homestay ventures.