AP Eyes World-Class Theme Parks; Govt Woos Investors with Incentives
The Andhra Pradesh government plans to develop world-class entertainment facilities and theme parks in the state, Tourism Minister Kandula Durgesh told the Legislative Assembly on Friday.
Responding to a question from Prathipadu MLA B. Ramanjaneyulu, the minister spoke about a proposal for a Disney World-style project. The project has been proposed on 171.14 acres at Karnutala village in Vatticherukuru mandal of Guntur district.
Durgesh said projects of this scale usually require investments between ₹35,000 crore and ₹60,000 crore.
He said private companies usually build and operate large theme parks across the world. Governments mainly support them by providing land, approvals, and financial incentives.
The minister said the average spending capacity of tourists in India is about ₹20,000–₹21,000. This is still lower than spending levels seen in many global tourism markets.
He said the government is working to improve conditions so that such large projects can become viable in the future.
Durgesh cited global examples such as Disney World and Universal Studios. These parks operate in major cities like Orlando and Los Angeles in the United States, Tokyo in Japan, Paris in France, and Shanghai in China.
He said strong tourist demand and higher visitor spending make such ventures commercially viable in those cities.
“For such projects to succeed in India, tourist footfall and spending capacity must grow,” he said.
To attract major investments in tourism, the state government is offering several incentives. These include fixed capital investment subsidies of 5–10 per cent, capped at ₹40 crore.
Other benefits include full reimbursement of stamp duty and exemption from land-use conversion charges. The government will also reimburse electricity costs charged at industrial tariff rates.
Durgesh said the government is offering 100 per cent reimbursement of SGST for seven to 15 years. It will also reimburse 50–100 per cent of EPF and ESI contributions for three years.
He said the government may offer additional customised incentives for mega and ultra-mega projects on a case-by-case basis.
The minister added that the Tourism Department is holding discussions with companies such as Imagica and Wonderla. These firms operate amusement parks in Mumbai, Bengaluru, and Hyderabad.
He said the companies have shown interest in developing theme parks in Tirupati and Visakhapatnam.
Durgesh also said three of the 102 MoUs signed at the Visakhapatnam Partnership Summit relate to theme park projects. The department signed agreements worth ₹18,448 crore at the summit.