13th July 2015
To, All Members,
Sub: Revised MDA Guidelines applicable from 9th July 2015.
As you are aware, IATO has been pleading with the Ministry of Tourism, Govt. of India for revision in the guidelines of MDA Scheme and also on the problem in generating leads from the Ministry of Tourism, website regarding which Mr. Pronab Sarkar, Hony Secretary will be sending you a detailed report.
However, on the MDA assistance even though, it has taken us more than 2 years, we did not give up and finally have got the very good policy in place. Out thanks are due to Dr. Mahesh Sharma, Hon’ble Minister of Tourism, Dr. Lalit Panwar, Secretary (Tourism), Mr. Girish Shankar, Additional Secretary (Tourism), Mrs. Usha Sharma, Addl. Director General (Tourism) and Mr. Suman Billa, Joint Secretary (Tourism), Govt. of India, who all have extended full support in revising the guidelines.
We were constantly in touch with the Ministry of Tourism for revision in the MDA Guidelines, as there were some restrictive clause in the guidelines to be eligible for claiming reimbursement under MDA Scheme, mainly the requirement of 15% growth in the foreign exchange earnings. Most of our recommendations have been accepted and have been incorporated under the revised guidelines which are effective from 9th July 2015. Main components inter-alia where our recommendations have been accepted and duly incorporated are as under:-
• Clause of 15% growth has been relaxed to 5% in foreign exchange earning during a 3 year period to be eligible for financial support for MDA. The clause will be made effective from the financial year 2015-16 and tourism service providers will have to show a cumilative increase of 5% in foreign exchange earning at the end of year 3 over from the base year 2014-15.
• Hotel expenses for maximum five nights with upper limit of Rs. 8000 per night has been added
• 90% of economy class fare by Air/Euro rail from one country to another country (which was earlier 75% only).
• 90% of cost of built up/furnished stall has been accepted (which was earlier 75% of the cost).
• Some relaxation has been given for travel by Air India i.e.
- In order to avail the benefit of reimbursement of air fare under the MDA Scheme, all tourism service providers / officials of Tourism Departments of States / UTs may travel only by Air India/Indian Airlines, to stations directly connected by Air India/Indian Airlines.
- For travel to stations not directly connected by Air India/Indian Airlines, but which are directly connected by other airlines, travel by other airlines would be permissible on the lowest available fare (documents in support of the fare being the lowest available to be furnished)
- For travel to stations not directly connected by any air services with stations in India, if travel on the shortest route available is undertaken through a station connected by Air India, reimbursement of air fare would only be made for travel by Air India on that sector.
• There would be one Application Format for all reimbursements i.e. For participation for Sales Tours, Travel Fairs and Exhibitions and Road Shows
• Financial support will be provided for total four events covering sales tours, travel fairs and exhibitions and Road Shows
• The maximum upper limit for claim per case has been increased to Rs. 2.5 lakh, (which was Rs. 2 lakh earlier).
• No prior approval of the Ministry is required. However, applicant has to inform the ministry by email atleast 14 days in advance
A copy of the revised MDA Guidelines as received from the Ministry of Tourism, Govt. of India are attached for your easy reference.
Revised MDA Guidelines are in supersession to the earlier guidelines of 27th November 2013.