New Delhi, Jan 24 (UNI) Days ahead of the Union Budget, industry body Confederation of Indian Industry (CII) has proposed that granting 'infrastructure status' to the hotel sector should be delinked from geographical or population criteria.

The move would help hotel developers in smaller cities to access loans from banks at better interest rates.

Currently, three-star or higher category classified hotels located outside cities with a population of more than 1 million have been granted infrastructure status.

Suggesting an eight-point agenda for promoting tourism in the forthcoming Budget, CII on Friday said that granting infrastructure status to hotels irrespective of their locations would enable them access to long term funds at lower interest rates and a longer repayment period for the hotel sector which typically has a longer gestation period.

The industry body also called for developing 200 new tourist destinations in a time-bound manner given the huge tourism potential in India.

Other suggestions of the CII include launching Mission Suraksha and Incredible India 3.0 or Atulya Bharat campaign.

The industry chamber also proposed to include tourism in the concurrent list 'to elevate the sector on the national agenda and to enable the Centre and States to effectively legislate and work together on the sector.'

"Currently, tourism is not listed on any of the three lists in the Seventh Schedule of the Indian Constitution which lays down the division of powers between the Centre and States," it said.

The Budget 2025 will be presented by Finance Minister Nirmala Sitharaman in Parliament on February 1, 2025.

UNI NK CS1521